Tag Archives: employee relations

Employers Who Mislabel Employees Risk Penalties

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Suzanne C. Odom

Suzanne C. Odom, Attorney at Law, Montgomery & Andrews, P.A.

Under competitive pressures, some employers are tempted to label workers “independent contractors” rather than employees so they can avoid paying benefits, matching Social Security and Medicare taxes, paying federal and state unemployment taxes and following employment laws, such as the Fair Labor Standards Act. This practice of misclassification has created substantial problems for affected employees and for the United States Treasury, the Social Security and Medicare funds, and state unemployment and workers’ compensation funds.

As a result, the U.S. Department of Labor and Internal Revenue Service signed a memorandum of understanding in September 2011 so the agencies could work together and share information to reduce employee misclassification, close the tax gap and improve compliance with federal labor laws.  Continue reading →

Engage Employees to Increase Productivity

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Andrew Siegel

Andrew Siegel, Owner, Payday Inc.

Hiring a new employee is just the beginning of the company’s relationship with this member of its work force. An employee who seems ideal during a job interview might prove a poor match for the job once the probation period ends and he settles into the workplace routine. Studies show that over 70 percent of workers are disengaged. Much of that is because of mismatch between a person’s natural talents and the requirements of the job.

While a small-business owner who asks questions tailored to the behavioral and professional requirements of a specific job improves the odds of recruiting the right person, hiring isn’t an exact science. Human resource consultants who use job benchmarking tools can improve the odds; but in the long run, matching employees to the right job in a small business requires ongoing involvement in workplace dynamics and a willingness to make adjustments where needed.

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