Terminated employees are more apt to sue their former employer. Pitfalls to avoid?

  • Vacation time must be treated as wages & paid on day of discharge.
  • It’s important to accurately record hours and pay, otherwise, you may be personally liable for attorney’s fees, wages & mandatory triple damages.
  • Independent Contractors (“1099 workers”) must meet certain requirements to have this qualification. A true contractor is free from your control/direction, provides service outside your usual business and engages in an independent trade, occupation or profession. Liability arises under wage & hour laws, overtime rules, record-keeping rules, tax withholding laws & worker’s comp laws if you incorrectly classify a worker.

Former employees often have little to lose, as they may claim damages plus attorneys fees. If you think you are in a “grey area” on these issues, consult counsel first, to avoid heavy liability later.