By Adin C. Goldberg
When we think of "the Microsoft case," the current Justice Department antitrust suit quickly comes to mind. But for those in the labor and employment law field and for employers throughout the United States, Microsoft brings to mind the continuing litigation involving that company's classification of workers as independent contractors, and the expensive consequences of that decision.
The classification issue has broad ramifications for corporate America. The dangers of worker misclassification are significant. Potential tax liability may result, since companies do not withhold income taxes or pay Social Security taxes on behalf of independent contractors. Liability for benefits (such as retirement, health, stock purchase plans and other types of employee fringe benefits) is possible, both to workers improperly classified as independent contractors and to those employed by staffing firms. And, companies may be subject to claims under employment
