From the course: Hiring Contract Employees
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What generates investigations?
From the course: Hiring Contract Employees
What generates investigations?
I once represented a dance studio that hired independent contractors to give dance lessons. These instructors also worked at other studios as well as for private clients. They were paid for every class they taught at the time of teaching. The owner felt he had to fire one of the instructors because she missed several scheduled classes, upsetting the students. After being fired, the instructor filed for unemployment benefits despite having knowingly played the independent contractor game for many years. Big surprise, the California Employment Development Department, or EDD, which manages unemployment claims, wanted to know what other dance instructors the studio had contracted with over the three previous years. That's when the owner knew he needed to get a lawyer involved. Talk about a compliance nightmare. To avoid additional fines and the cost of litigation, the dance studio settled with the EDD and began treating all of its instructors as W2 employees, despite the randomness of…
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