Annually, we caution business owners about the DANGERS of employee misclassification. This is a serious problem with serious ramifications. It happens when an employer hires a worker and erroneously classifies that person as an “independent contractor” instead of an “employee”. Often times, employers commit misclassification by issuing an “IRS Form 1099” and a contract, referring to a person as an independent contractor; yet treating them like an employee. The difference between the two comes down to the “right to control”. The IRS has developed a very specific test with several factors to determine Contractor v. Employee status. Michigan courts have developed a test as well… Click HERE to read more.