While the concept is simple enough, the application is not. There are a number of exempt categories and each has tests that must be met to qualify. The consequences of misclassifying an employee can lead to back pay, liquidated damages, fines and even potentially criminal penalties. The Family and Medical Leave Act requires most employers with 50 or more employees to provide Up to 12 weeks of unpaid leave each year to care for a newborn, adopted or foster child or for a seriously ill child, parent or spouse or because of the employee's own impairment due to a serious health condition which requires in-patient care or continuing treatment by a health care provider. There are different methods of calculating the year, notice requirements that the employer must meet, information which may be requested by the employer to monitor use of the leave and certain exemptions from coverage.
Employee handbooks are a useful tool for conveying standard operating procedures of the company.
They should be written in a manner that will not create contractual rights. The policies contained in them should all comply with Federal and State laws, and they should be continuously updated so that they contain the company's current policies and practices because they can become evidence if there is a dispute. In a highly competitive job market with high recruitment and training costs it is important to develop and follow a hiring procedure that will allow the company to identify the best candidate for the position and do so in a way that will prevent or defeat claims of discrimination. If someone who truly is an employee is misclassified as an independent contractor, there are a number of bad consequences including fines, penalties, back pay, overtime pay, back taxes, interest, penalties and even potentially jail time. The rights or penalties provided by Federal and State labor and employment laws can be determined in a variety of places ranging from administrative agencies such as the National Labor Relations Board, the Public Employment Relations Board, the Workers' Compensation Board, the New York State Labor Department, to State and Federal Courts.