Worker Classification Training Course
Wage-and-hour lawsuits are becoming one of the fastest-growing areas of class-action litigation. These disputes often involve accusations that “non-exempt” (hourly) employees have been misclassified as “exempt,” which can mean claims for two or three years' worth of back-pay and benefits for large groups of employees.
Why are such lawsuits on the rise? Because governments, particularly in challenging economic times, look for ways to collect additional tax revenue. The U.S. Government Accountability Office (GAO) has found that the federal government stands to lose $7 billion in payroll-tax revenue over the next decade because employees are often misclassified as Independent Contractors (ICs). In response, both federal and state tax- and labor-enforcement agencies are increasing efforts to audit businesses to recapture tax dollars from employers who misclassify employees.
Worker-classification audits and lawsuits can have enormous consequences on companies. In 2009, the ten largest private wage-and-hour settlements totaled nearly $364 million, a 44% increase from the prior year. Employers are training their managers on worker-classification issues to avoid such lawsuits and their staggering costs.
The Cintas, 35-minute Online Worker Classification Training Course defines the differences between employees and ICs and between exempt and non-exempt employees in easy-to-understand terms. Course content includes quizzes, news briefs and real-world worker-classification issues that managers should become familiar with in order to help their organizations avoid the consequences of misclassification.
- Employee or IC? How to determine
- Exempt employees or non-exempt employees? How to determine
- Misclassification — how to avoid the penalties and other consequences
- Determining worker classification — federal and state tests
- A look at what constitutes ICs
- - Independence and autonomy
- - Types of IC services
- - Established businesses
- Exempt employees — know the various categories