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.