De gevolgen van het verkeerd classificeren van werknemers als zpp'ers

Als je internationale medewerkers in dienst neemt betaal je je team meestal als zzp'ers of als fulltime werknemers. Als je iemand die een werknemer zou moeten zijn classificeert als zzp'er, kan je bedrijf te maken krijgen met hoge boetes en straffen.

Dit risico wordt steeds belangrijker nu bedrijven in de gig-economie de grenzen aan het verleggen zijn van wie zzp'er is en wie niet. Het hooggerechtshof in het VK heeft deze week unaniem een beroep van Uber afgewezen tegen een vonnis over betere secundaire arbeidsvoorwaarden voor chauffeurs, zoals betaald verlof en minimumloon.

Hoe je je medewerkers classificeert hangt af van een aantal factoren. In onze gids over zzp'ers omzetten naar werknemers beschrijven we de voordelen van het anders classificeren van medewerkers. Maar je moet eerst de risico's beseffen zodat je een weloverwogen beslissing kunt nemen.

Lees verder voor meer informatie over de negatieve gevolgen van het verkeerd classificeren van werknemers als zzp'ers.

Overheidsboetes

Overheden over de hele wereld leggen verschillende soorten boetes op aan bedrijven die medewerkers verkeerd classificeren. Deze boetes kunnen uiteenlopen van een eenmalige tik op de vingers tot enorme straffen voor hardnekkige overtreders.

In de VS kan de IRS bijvoorbeeld verschillende boetes voor verkeerde classificatie opleggen. Boetes beginnen bij $ 50,00 per niet-ingediende W-2. Daarbovenop kan 1,5% van het betaalde loon komen en onbetaalde FICA-belastingen voor zowel de werkgever als werknemer. Bedrijven die opzettelijk een verkeerde voorstelling hebben gegeven van een arbeidsrelatie kunnen te maken krijgen met nog zwaardere straffen.

En dat is alleen nog maar de IRS. De staatsoverheid kan eigen boetes uitgeven voor het verkeerd classificeren van medewerkers (en zal dat ook doen).

Buiten de Amerikaanse grenzen worden dingen nog vervelender. In Australië kunnen bedrijven bijvoorbeeld worden verplicht $ 66.000,00 te betalen per schending. Sommige landen verplichten werkgevers om niet alleen voor achterstallige belastingen te betalen, maar ook voor wettelijke secundaire arbeidsvoorwaarden. Overheden kunnen bedrijven ook verplichten onbetaald verlof en andere sociale bijdragen voor hun rekening te nemen, waardoor het totale strafbedrag nog hoger wordt.

Bedrijfsstraffen en -verboden

Zelfs nadat je de boetes hebt betaald en de verkeerd geclassificeerde zzp'ers hebt gecompenseerd voor hun onbetaalde secundaire arbeidsvoorwaarden, kan het nog niet gedaan zijn met de overheidsstraffen.

Strafmaatregelen voor verkeerde classificatie zijn niet beperkt tot geldstraffen. In sommige gevallen krijgen bedrijven een bevel om te stoppen met de werkzaamheden in de staat of het land, of zelfs een geheel verbod op zakendoen. In 2020 werd er in New Jersey een wet ingesteld waarbij de staat het recht kreeg om bevelen voor het stoppen van de werkzaamheden uit te geven voor schendingen van de arbeids- en loonwetgeving. Californië heeft haar eigen wetgeving voor verkeerde classificatie in 2019 vernieuwd.

Landen kunnen hetzelfde doen en dit kan desastreus zijn voor een bedrijf dat internationaal probeert uit te breiden. Zelfs als je maar één medewerker in een land hebt, kan het verlies van een waardevol teamlid je concurrentiemogelijkheden flinke schade berokkenen. Doordat verschillende landen verschillende regels hebben voor classificatie, moet je extra voorzichtig zijn en ervoor zorgen dat je je medewerkers correct classificeert.

4. Loss of intellectual property

Intellectual property rights with remote workers should be a larger conversation, yet not many businesses talk about the issue. When you work with team members in other countries, transfer of IP to your business can get complicated quickly.

Learn how Remote protects your intellectual property with Remote IP Guard.

Misclassification can create issues that have nothing to do with civil penalties from a government. In some cases, a messy classification could lead to a total severance of the relationship, leaving questions about who actually owns the work produced. You may see the issue as straightforward, but if a person in another country claims ownership of your IP, you could be in for a hard battle.

Don’t leave your intellectual property up for grabs. Make sure your employment agreements and contracts with independent contractors are ironclad. Not only does losing your IP harm your company, but legal questions about IP ownership could also cause potential partners to avoid working with your business.

5. Legal disputes with workers

No business wants to fight with its workers in court. From the outset, a legal fight with an employee calls the company’s reputation into question. Even if the company has the full backing of the law on its side, the bad press from the disagreement could prevent other potential employees and partners from considering future engagements.

Further, legal disputes take up both money and time. In cases of misclassification, especially cases involving multiple workers, the executives of the company have to spend their own time in court fighting the battle. Company leaders need to spend their time developing strategies and strengthening partnerships, not flying across the globe to argue in courts with unfamiliar rules.

Such legal disputes can quickly become expensive. A single misclassification can lead to a lengthy court battle, and multiple misclassifications can severely hamper a company’s ability to grow. Better to get it right from the outset than to leave classification to chance.

Gebruik onze checklist voor compliance van zzp'ers om verkeerde classificatie te voorkomen

Neem deze checklist door om beter te kunnen bepalen of je nieuwe teamlid een zzp'er of werknemer is.

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Why should you be aware and informed about misclassifying your employees?

The National Employment Law Project estimates that 10 to 30% of US employers are misclassifying their workers as independent contractors.

Say you go through a misclassification nightmare and emerge from the other side mostly unscathed. You pay some fines, dodge the bigger penalties, and keep the issue out of the press.

Even in this unlikely scenario, your company is primed for more trouble down the road. You may suffer from long-term repercussions, such as the following:

• Increased regulatory scrutiny: After you've been caught once for misclassifying your employees, government agencies keep a closer eye on your business practices.

• Damaged reputation: Negative publicity surrounding misclassification can tarnish your brand image and make it harder to attract top talent.

• Loss of trust: Your employees, business partners, and investors may trust you less after a misclassification scandal.

• Legal challenges: Misclassified employees may sue for unpaid wages, employee benefits, and other damages, leading to expensive and legal battles.

Regulators in the country in question have now dealt with your company on the wrong side of the law. They know you have done one thing incorrectly, and they will now look more closely to see whether you have broken any other rules. Your brand name is familiar to the wrong people for the wrong reasons, and it could take years to repair that reputation.

Misclassifying employees as contractors is about much more than saving money in the short term. It’s also about damaging the reputation of your brand, losing the trust of multiple legal systems, and harming your chances of success in a country where you once saw promise.

Being misclassified can also be devastating from an employee’s perspective. The Economic Policy Institute estimated that they could suffer close to $17,000 per year in lost income. This includes not only overtime pay and minimum wage protections, but also health insurance, retirement contributions, and paid time off.

Moreover, misclassified employees have a greater tax burden, as they’re responsible for paying both the employer and employee portions of their income taxes.

How Remote can help you avoid misclassifying employees as independent contractors and its penalties

Remote takes care of all the complex compliance details for you so that you can stay on the right side of the law.

Global compliance

Remote’s employer of record (EOR) service acts as a legal employer for your global workforce. We handle all things HR, including payroll, taxes, benefits, and local labor law compliance.

By partnering with us, you get peace of mind knowing that you’re staying compliant in every country you hire in.

Seamless contractor-to-employee transitions

Thinking of bringing your superstar contractor on board as an employee? Remote's got your back. We streamline the entire transition process, handling all necessary paperwork, payroll adjustments, and benefits enrollment. We even offer localized contracts that are tailored to specific laws to ensure a compliant transition.

Then comes the onboarding process. Remote simplifies that step, too, with our fast and painless onboarding process. Plus, if your needs change in the future, we also provide support for employee to independent contractor transition.

Hire with confidence

Your dream team shouldn’t be limited by borders. Tap into a vast pool of pre-vetted global talent with Remote.

List jobs and hire the best remote talent out there on our platform. You can also use our compensation explorer tool to help you craft a competitive compensation package for wherever you hire.

Proactive misclassification risk assessment

Worried about accidentally misclassifying your workers? Our employee misclassification risk tool can help you evaluate your current workforce and identify any potential issues.

Remote's legal and HR specialists can also provide personalized consultations to maintain compliance with local labor laws, minimizing the risk of misclassification.

Leave worker misclassification problems behind

Staying compliant while growing a global team shouldn’t be stressful. Remote makes it easy for companies of all sizes to work with global teams and mitigate misclassification risks.

Our contractor payment services, in addition to localized payroll, benefits, and taxes, ensure everyone who works for your company is categorized correctly and treated fairly.

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FAQs for misclassifying employees and its penalties

Find the answers to common questions about employee misclassification here:

How common is it for a business to misclassify workers?

Misclassification is a common problem, whether it's willful misclassification or not. Some businesses misunderstand the complex rules, while others deliberately misclassify workers to save money by not paying for benefits or overtime.

The rise of the gig economy has made it even harder to tell the difference between employees and independent contractors.

How much can an employer be sued for misclassifying its employees?

The amount sued for depends on the number of affected workers, the length of the misclassification, and the laws violated.

Fines can range from thousands to millions of dollars, including back wages, overtime pay, benefits, damages, and legal fees.

In cases where class-action lawsuits are filed, companies are susceptible to larger payouts, as the damages are multiplied by the number of workers involved.

How do I correct employee misclassification?

You can correct misclassification through the following means:

• Voluntary reclassification: Employers can proactively reclassify misclassified workers as employees and provide them the benefits they’re entitled to.

• IRS Voluntary Classification Settlement Program (VCSP): This program allows employers to voluntarily reclassify their workers and receive partial relief from federal employment taxes.

• State programs: Some states offer similar programs to the VCSP, providing tax relief or other incentives for employers who voluntarily correct their mistakes.

• Consulting with legal counsel: Contacting an employment lawyer can help you figure out the necessary steps to reclassify a worker.

• Implementing clear policies and procedures: Establishing clear guidelines for classifying workers and conducting regular audits will help prevent misclassification.