Kristen Prinz appears on First Business with Bill Moller to discuss confusion over freelance workers

Managing partner, Kristen Prinz, appeared on First Business with Bill Moller to discuss the confusion over freelance workers in the labor market.

The 9th Circuit recently ruled that FedEx was misclassifying its workers as independent contractors. There is a lot of confusion regarding misclassification of employees as independent contractors. As Ms. Prinz explained, “what it really comes down to is do you [the employer] exercise discretion and control over these employees and there is a lot of grey area in that.”

Companies often think they can save money by classifying their workers as independent contracts because it allows them to avoid paying overtime, employment taxes, and benefits. However, misclassifying employees as independent contractors can be very costly because there are substantial penalties and fees at risk. Careful consideration should be made when deciding whether a worker is an employee or contractor.