Posts by Jill Weinberg
At first glance hiring all ICs seems financially savvy. Companies can avoid withholding and paying certain taxes. ICs need not be provided medical benefits, retirement, paid vacations or holidays. No overtime needs to be paid. No unemployment claims can be made against the company. Simply calling a worker an independent contractor, even in writing, will not automatically avoid FLSA violations. Before a company dreams of converting all its employees to ICs, it needs to be aware of expensive consequences under the Fair Labor Standards Act of 1938 (FLSA). See full article here.
An employment contract can benefit both employee and employer if the terms are clearly written as to compensation/benefits, performance reviews/raises, job duties, grounds for termination, bonuses, commissions, severance, noncompetition, stock options and term of employment. In a perfect world, employees would know exactly what they are agreeing to before signing employment contracts. Most people, in the “honeymoon “phase who receive job offers, quickly read the offer letters or agreements and sign on the spot. Only after the employment relationship changes (demotion, layoff, termination), will an employee dust off the employment agreement and realize that certain promises or expectations (such as
As current headlines have shown, many companies have paid out millions of dollars in judgments or settlements for overtime violations under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq. In such lawsuits, in addition to recovering unpaid overtime for up to three years, plaintiffs often can recover liquidated damages for willful violations. Further, the FLSA mandates that the employer pay the prevailing plaintiffs’ attorneys’ fees. A clear action plan before a DOL investigation can avoid protracted litigation and expensive damage awards. As further explained below, an action plan should include: (1) Strategy sessions