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Improper Classification Can Have Huge Consequences

Law360 (November 7, 2008, 12:00 AM EST) -- On Oct. 13, 2008, the Fifth Circuit Court of Appeals decided an important case on the increasingly litigated question of whether workers are independent contractors or employees.

The consequences of improperly classifying employees as independent contractors can be huge. The company discussed in the following case faces a significant risk of loss because of an improper classification.

Hopkins v. Cornerstone America

In Hopkins v. Cornerstone America, 2008 WL 4542491, the Fifth Circuit addressed whether sales leaders for the marketing division of a life insurance company were...
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