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The use of independent contractors has become an increasingly common business practice. It affords a business the benefit of workers with specialized expertise, while eliminating administrative burdens typically associated with an employee/employer relationship, such as minimum wage and overtime obligations, payroll taxes, employee benefits, Worker’s Compensation premiums, and the like.

However, misclassifying a bona fide employee as an independent contractor – either intentionally or inadvertently – can result in serious consequences, including enforcement actions and liability for back wages, back taxes, and other fines and penalties.

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