Misclassification of employees as independent contractors can result in liability under the Fair Labor Standards Act of 1938.

Question

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Misclassification of employees as independent contractors can result in liability under the Fair Labor Standards Act (FLSA) of 1938. This is because the FLSA only applies to employees and not independent contractors, so misclassification can lead to violations of minimum wage and overtime pay requirements. As a result, employers may be held liable for back pay, damages, and penalties.

Misclassification of Employees as Independent Contractors Can Result in Liability