Employers who hire independent contractors are urged to ascertain the correctness of the classification. The IRS and U.S. Department of Labor, along with several state governments, have stepped up their efforts to identify workers who are misclassified as independent contractors. Misclassification may result in, among other inquiries, IRS and Florida Department of Revenue audits and U.S. Department of Labor investigations. In addition, a misclassified independent contractor might allege, among other claims, discrimination, unpaid overtime, interference with leave rights, and the denial of reemployment, workers’ compensation, group health insurance and retirement benefits.
