Employee or Independent Contractor?

Misclassification of employees as independent contractors is a common issue for business owners in Minnesota and elsewhere. Business owners receive many benefits from classifying working with independent contractors as opposed to hiring an employee. There are no federal taxes to withhold, and no Social Security or Medicare taxes to pay....

How Employees are Classified

Classification of employees is dictated by Fair Labor Standards Act (FLSA) rules. The FLSA ensures employees receive compensation for their work, guaranteeing a minimum wage as well as fair overtime pay when applicable. A small portion of workers are “exempt” from a minimum wage or overtime as specified under federal...