How to Avoid the Risk of Employee Misclassification

With April Goodwin

The Growing Your Team Podcast Episode 8

Many small business owners are putting themselves at risk of employee misclassification. This happens when they hire someone as an independent contractor but lead the relationship like the person is an employee.

Not only can employee misclassification lead to fines, fees and penalties from the IRS, but it can also lead to expensive legal cases.

In this episode of the Growing Your Team podcast, Florida based lawyer, April S. Goodwin discusses why employee misclassification can lead to legal involvement and how to avoid this issue within your small business.

About April Goodwin:

April S. Goodwin is the owner and founder of The Goodwin Firm, a boutique law firm in Largo, FL focusing on employment matters throughout the state of Florida.

Ms. Goodwin has been an attorney in Florida for over 18 years. She received her undergraduate degree from The Ohio State University and her Juris Doctorate from Ohio Northern University. She became interested in the law in high school after reading about free speech issues in the music industry, but in college turned her interest to helping employers with matters relating to employee management.

After law school she gained priceless experience in litigating a wide variety of cases and legal issues while working for the State of Florida and private law firms. In early 2015 she founded The Goodwin Firm where she has been able to return to her passion to help small business owners navigate the landmine filled field that is employment and labor law.

In this Episode You’ll Hear:

  • How every business, even local businesses, cross state lines and what this means from your business. (5:00)
  • Why you need to pay attention to California employment laws even if you are not located within or hiring people from that state. (7:35)
  • The difference between employees and independent contractors, and why you as an employer or worker cannot contract employee rights away. (10:07)
  • How the integral roles within your business can usually only be filled with employees. (12:20)
  • Examples that show whether someone you’re hiring is an employee or an independent contractor. (13:14)
  • Why a signed contract does not protect you from employee misclassification. (17:25)
  • How misclassifying an employee can lead to significant legal problems and cost up to six-figures to correct. (18:23)
  • What your next step should be if you determine you misclassified an employee. (31:52)
  • Why ending a relationship because a team member questions their employment status can put you in even hotter water. (33:47)

Listen Now:

Related Episodes:

How to Connect with April Goodwin:

Next Steps:

Do you have questions about anything discussed in this episode? Or, do you have other questions about hiring or managing team members for your small business?

Then, you are invited to join the free Growing Your Team Facebook community.

The group is designed to provide you support as you grow and manage the team who is going to save you time and earn you more revenue.

So, come on over and join the Growing Your Team community and let’s grow you the team you need and deserve. 

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April Goodwin, Growing You Team Podcast, Jamie Van Cuyk, Small Business