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One Employer's Strategy Against the DOL's Crackdown on Employee Misclassification

By Annette A. Idalski, Daniel D. Pipitone and Kelly E. Campanella
January 30, 2012

Imagine that your client, a small business owner, alarmed by a recent visit from the United States Department of Labor (DOL), calls you. The DOL's Wage and Hour investigator has informed your client that he owes the government millions of dollars for violating the Fair Labor Standards Act (FLSA) and misclassifying as independent contractors hundreds of individuals that the investigator believes are employees. Moreover, the investigator states that the client will have to treat his contractors as employees going forward, thus forcing him to change his business practices drastically.

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