As the economy continues to move toward a gig-based business model, more and more companies are hiring freelancers and independent contractors. While this arrangement provides benefits to both parties, failing to classify workers correctly can land your business in hot water. Therefore, in addition to protecting your operation with a comprehensive Delaware Employment Practices Liability Insurance policy, read on to ensure you are in compliance with labor boards.
If the worker is improperly classified, they run the risk of missing out on important perks of being an employee such as paid vacation time, sick leave, 401K, and insurance benefits. Further, the employer can incur penalties, fines, lawsuits, and even jail time if they fail to provide the proper classification and tax forms to the worker.