Barbara Weltman

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Misclassifying Worker can Trigger Damages to that Worker

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Is your worker an employee or independent contractor? If you intentionally misclassify an employee as an independent contractor by filing Form 1099-MISC with the IRS, you may be liable for damages to the worker. In one recent case, an office manager who was fired sued for overtime and asked for damages related to the 1099. A district court granted her request for civil damages for filing a fraudulent return.