Employers should carefully consider and review new hire paperwork, as well as their other employee agreements, policies, and procedures, to help ensure they are in the best position possible if things go awry with an employee.
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Hiring employees is an endeavor full of pitfalls for small business owners. One issue that often causes confusion for even the savviest of business owners is whether to pay overtime compensation to employees.
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A common belief among business owners is that any person hired to perform services on behalf of the organization can be classified as an independent contractor so long as the worker agrees or has signed a written contract. However, this is a misconception, and inadvertently misclassifying an employee as an independent contractor leaves businesses open to substantial liability.
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