Business owners may encounter a number of hurdles in their daily operations and running a company of any size can be stressful, even when things are moving forward smoothly. However, unexpected problems can arise at any time, and they can be very tough for someone who runs a business. Sometimes, these hurdles may involve legal action, and a business owner may not be prepared for litigation or the potential consequences that could arise as a result of the lawsuit. In some instances, current and former staff members or contractors decide to file suit, such as a worker who claims that they were misclassified as an independent contractor.

There are many factors to consider when it comes to these lawsuits. For example, some business owners may not realize that they misclassified a worker as an independent contractor when the individual should have been considered an employee. On the other hand, some workers wrongly believe that they should be treated as employees even though they are considered an independent contractor from a legal point of view. They may not be familiar with the law or they may be trying to shatter a company’s reputation for whatever reason.

In the digital age, there is even more confusion about whether a worker should be classified as an employee or an independent contractor, especially with an increase in the number of freelancers. You should make sure that you are well aware of your obligations as an employer and do everything you can to handle such a lawsuit properly if one arises.