There are rules and regulations in place that govern hiring practices and taking steps to clearly define the status of employees can prove integral in various ways. However, studies suggest that employee misclassification continues to prove unfortunately common. Knowing the possible repercussions of such issues might be beneficial to helping cultivate an atmosphere of compliance and prepare to protect the interests of employers and employees in Hawaii alike.
The risks
There could be various risks to misclassifying workers. For instance, misclassification could lead to a variety of payroll tax issues and failure to pay taxes under similar circumstances can be detrimental. Similar issues could also act to reduce protections and benefits for classes of workers. In some cases, misclassification could also lead to fines and penalties stemming from compliance violations.
Studies also indicate that companies might be required to provide compensation for benefits and back pay for similar employment law violations. It may also be possible to face criminal charges in scenarios in which misclassification is intentional. Employees who suffer loss or damages due to misclassification may also retain the right to seek restitution via civil lawsuit.
Maintaining compliance
The presence of employee misclassification could take a devastating toll on all parties involved but knowing how to stave off similar issues may prove challenging at times. Those who wish to promote an atmosphere of compliance but remain uncertain how to achieve such a goal could benefit from speaking with an attorney for guidance on their options. An attorney can work with a client in Hawaii in creating a strategy to improve compliance in employee classification and provide further assistance should any issues arise stemming from similar concerns.