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What Are the Dangers of Misclassifying Employees and Independent Contractors?

Employers should take great care when classifying workers. Misclassification can create serious legal problems, including audits of the entire workforce by federal and state tax authorities and even charge of penalties. Misclassification of workers is an area of increasing concern, as both the federal and state governments are ramping up efforts to investigate employee misclassification issues in order to raise revenue through penalties and increased payroll tax.

There are some financial incentives for companies and employers to classify employees as independent contractors. This can put a company at risk for misclassifying if policies and best practices are not in place to govern classification.

However, any financial advantages gained can be destroyed due to employee misclassification. That’s why it is really important to take preventative steps to avoid hefty fines, penalties, and potential reputation issues related to noncompliance of misclassification of employees and independent contractors.

The Law Offices of Payab & Associates is a Los Angeles based law firm with more than 17 years of experience in employment cases. Our office has successfully litigated many complex disputes including wrongful termination, sexual harassment, racial discrimination, wage and labor disputes, and retaliation cases.

Contact the Law Offices of Payab & Associates @ (818) 918-5522 or visit if you have any questions regarding your rights at the workplace.

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Why Choose Payab & Associates

  • Over 20 years of legal experience
  • Recipient of “People Love US” on Yelp for 3 years
  • Over 600 five-star reviews on Yelp, Google & Avvo
  • Rated A+ with the Better Business Bureau
  • Tens of Millions of dollars recovered for our clients
  • No fees or costs unless we recover money for you
  • We speak Spanish

Client Testimonials

  • The Law Office of Payab & Associates Thank you from the bottom of my heart.
  • The Law Office of Payab & Associates Going with David for help was the best thing I could have done.
  • The Law Office of Payab & Associates I highly recommend Payab and Associates.
  • The Law Office of Payab & Associates There are no words to express my appreciation.
  • The Law Office of Payab & Associates I felt well represented with Mr. Payab as my attorney.
  • The Law Office of Payab & Associates It was really a pleasure having him as my attorney and I greatly recommend him.
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