In this video, Barton Black from Blue Sky Law explains the crucial distinction between employees and contractors. While businesses can’t simply decide who is who, a complex set of guidelines from the IRS, Department of Labor, and state governments determines whether a worker is classified as an employee or a contractor. Misclassifying employees as contractors can lead to costly consequences, including back payroll taxes and overtime pay owed to the employee. Learn the risks of misclassification and how to ensure your business is in compliance.