Understanding Employee Classification: Essential Tips for Employers – Employment Edge with Liz

Elizabeth Schlissel, Partner in the Labor & Employment Practice Group at Falcon Rappaport & Berkman LLP, discusses how businesses should prioritize proper employee classification, whether you’re hiring or managing existing staff. Learn the critical importance of correctly classifying your workforce before it’s too late! Subscribe to FRB’s channel for more helpful resources, HR tips, and all things employment law.

Employment Edge with Liz is Falcon Rappaport & Berkman’s video web series hosted by Elizabeth Schlissel, Chair of the firm’s Labor & Employment Practice Group. Through the series, Liz provides timely, practical commentary on the labor and employment issues shaping today’s workplace, helping employers better understand legal developments and policy considerations. Episodes have covered a range of key topics, including employees leaving companies, employee classification, bonus policies, fixed leave versus unlimited PTO, and AI in the workplace.

Transcript:

**This transcript has been prepared automatically by AI and may contain inaccuracies**

Liz Schlissel:

I’m Elizabeth Schlissel and welcome to Falcon, Rappaport and Berkman’s The Employment Edge with Liz.

One of the largest areas of liability exposure for most companies is classification. That means how do you classify your workforce? Are they employees or 1099 independent contractors? Are W-2 employees exempt from overtime or non-exempt from overtime?

Decisions correctly as you hire new employees and independent contractors is crucial for employers to avoid significant liability.

If a worker is misclassified, for example, if an employee who is entitled to overtime is erroneously classified as exempt from overtime, it exposes the company to significant liability.

If you have any questions regarding classification of independent contractors and employees, please feel free to reach out to your employment attorney at Falcon Rappaport & Berkman.