Small business owners constantly face challenges in the form of wage & hour laws. These laws can be complex, and noncompliance (even by accident) can be costly. On May 3, NFIB hosted special guest Scott Horton, a lawyer, author, and employment law expert to answer often asked questions about wage & hour law.
Scott discussed employee compensation, minimum wage, overtime, and the distinction between exempt and non-exempt employees. These topics can vary significantly depending on both state and federal law.
“Why does worker classification matter?” Horton began. “Ultimately, it comes down to money. Whose money? Well, initially it’s the employer’s money. Then the question is how much of that is going to get paid to people who are working for your business? And related to that is a very important question of how much money is going to be sent off to various government entities, which could be a state or local taxing authority, or the IRS, or various other government-related entities. Sometimes that actually means insurance companies, because you’re obligated in most cases to have workers’ compensation insurance or to contribute to unemployment insurance.”
Regarding the difference between employees and independent contractors, Horton explains employees are individuals who work for a company under the employer’s control, receive compensation such as wages or salaries, and are subject to...
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