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Employee Misclassification: The Hidden Threat to Growing Businesses

Learn how employee misclassification can cost growing businesses thousands in penalties and legal fees. Understand the ABC test requirements and compliance strategies to protect your company.

Employee misclassification poses serious financial and legal risks that can derail business growth and stability. For companies, the consequences include substantial penalties from multiple government agencies, legal fees, and operational disruptions. For workers, misclassification means losing essential protections like minimum wage, overtime pay, workers' compensation, and healthcare benefits. In an era of increasing regulatory scrutiny and worker advocacy, proper classification isn't just legal compliance—it's fundamental to sustainable business practices and maintaining workforce trust. The growing gig economy and remote work trends make this issue increasingly relevant for businesses of all sizes.