Lowe’s Settles Employee Misclassification Lawsuit

Employers often misclassify their employees to avoid liability.
Forbes (1/21, Wald, 12.95M) reports that three lessons that businesses should learn following Lowe’s Home Centers settlement in which its contractors argued that “they had been misclassified as independent contractors instead of employees.” The article states that “one of the more common misconceptions held by today’s businesses is that working with an LLC removes the risk associated with misclassification.” Forbes cites the recent ruling from the US Court of Appeals for the Ninth Court and the Kansas Supreme Court that FedEx Ground “had misclassified employees as independent contractors who were operating as a business entity.”