Classifying Workers: New Maryland Standards


A worker's classification as an employee or as an independent contractor has

important ramifications. The consequences to workers of being classified as

an employee include entitlement to a variety of rights and benefits, such as

minimum wage and overtime pay, unemployment, workers' compensation,

Social Security and federal and state tax withholdings. For employers,

classifying workers as employees means incurring additional financial costs,

being held accountable to significant additional federal and state legal

requirements and being more vulnerable to "unionization." Ober|Kaler's Gary Hyman and Stacy Radz discuss.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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