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4 Tips For Avoiding Misclassification Suits

Law360, San Diego (July 28, 2015, 3:44 PM EDT) -- With “sharing economy” business models like Uber Technologies Inc.’s drawing greater scrutiny and the U.S. Department of Labor indicating this month that most workers qualify as employees under federal law, companies that rely on independent contractors need to take a close look at their contractor agreements and workers’ on-the-ground practices.

The DOL issued guidance on July 15 seeking to curtail the misclassification of employees as independent contractors, saying that most workers qualify as employees under the Fair Labor Standards Act and stressing the statute's expansive definition of employment.

“If you have contractors who are performing an integral function of your business...

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