Employee Classification
/ɪmˈplɔɪ.i ˌklæs.ɪ.fɪˈkeɪ.ʃən/
Definitions
- (n.) The legal process of determining a worker's employment status as an employee or independent contractor to establish rights, benefits, and tax obligations.
The company conducted an employee classification review to ensure compliance with labor laws.
- (n.) The categorization of employees to determine eligibility for wage, hour, and benefits protections under various labor statutes.
Correct employee classification is critical to avoid penalties related to overtime pay violations.
Forms
- employee classification
Related terms
See also
Commentary
Accurate employee classification is essential to comply with employment and tax laws and avoid misclassification penalties.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.