This is part one of a two part employment law series based on an interview I did with Mindy Flanigan, PHR, (www.inspiringhr.com) who is a Human Resource Specialist with more than twenty years of experience. During our interview Mindy said that due to increased enforcement by the federal and state governments, businesses with questionable if not illegal employment law practices like the dental firm referenced in the title, are being fined thousands of dollars, particularly under the fair labor standards act (FLSA).
Like the dental firm most businesses don’t know about the intricacies of the FLSA and don’t know much about the various federal and state laws that they are subject too. What’s more problematic is that businesses that are too small to hire a full time HR specialist may base their HR practices on incomplete and even mistaken beliefs and information. One example that Mindy mentioned is the continued practice of classifying employees as independent contractors (IC’s). While the IRS has a multiple question test to determine if a person is an employee or independent contractor, classifying someone as an employee may be based on as little as having the right to tell the employee what time to be at work and what time to leave work. Misclassifying employees as ICs to avoid paying payroll and other taxes may save you lots of money if you don’t get caught. If you’re caught however, the fines and penalties you pay may significantly affect your bottom line for that quarter and even the year.
In the next article I will discuss the two strategic ways that Mindy brings value to businesses. To learn more about her services visit her web site or email her at firstname.lastname@example.org or call her at 804-822-6383.
To learn more about Torus Law and our commitment to help you grow your business through a processing of Planning, Building and Protecting please call me at 804-368-7397 or visit us at www.torus.law.com.