Don runs a construction company.He hires people to work on his projects and tells them they are all "independent contractors." Legally,they are not independent contractors since Don tells the workers when to come to work,how long to work,what days to work,what they are to do each day,and so forth.At the end of each week,Don pays his workers in cash rather than with a check.Also,he does not withhold any state,federal or local withholding tax (since he claims the workers are independent contractors).Which statement is correct?

Question

Quizplus · Accepted Answer

Don has committed both unethical and illegal conduct. By misclassifying his workers as independent contractors, Don is avoiding paying employer-related taxes and benefits, which is illegal. Additionally, by paying his workers in cash and not withholding taxes, he is also breaking the law. This behavior is unethical as it is dishonest and violates labor laws designed to protect workers.

Don Runs a Construction Company