Closing Time Podcast Startup Employment Law: Avoid Costly Mistakes Before They Happen
May 15, 2024
Fenwick employment lawyer Sheeva Ghassemi discusses worker classification, misclassification risks, remote team employment laws, non-compete agreements, and AI bias in hiring. Key topics include exempt vs. non-exempt classifications, PEOs, AORs, EORs, navigating state-specific laws, and the legal implications of AI algorithms in recruitment.
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Worker Misclassification Risks
- Founders should understand the legal risks of worker misclassification.
- Misclassification can lead to tax liabilities, benefit disputes, and lawsuits.
Types of Misclassification
- Worker misclassification has two main types: contractor vs. employee and hourly vs. salaried.
- Founders often misunderstand these classifications as arbitrary choices, but specific laws govern them.
Employee Classification Advice
- Classify health coaches, dieticians, and therapists as employees rather than contractors.
- This provides better control and consistency in patient care.