Lots of Employees Get Misclassified as Contractors. Here’s Why It Matters

Source: David Weil, Harvard Business Review, July 5, 2017

…. The debate over the misclassification of employees — treating them as independent contractors instead of employees — pervades the modern fissured workplace. …. Though its form varies, the impacts of misclassification are almost always the same: the underpayment of wages, absence of benefits, and increased exposure to a variety of risks. And when misclassification is adopted as a business strategy by some companies, it quickly undermines other, more responsible employers who face costs disadvantages arising from compliance with labor standards and responsibilities. ….