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Virtually every young company struggles to properly classify workers as independent contractors or employees. Initially, when everyone involved in a startup is working on a part-time basis and pursuing other interests, it is easier to justify an independent contractor designation for most workers. But as the organization increases in stability and the first few hires start working 40-hour work weeks and more, when is a founder in danger of illegally classifying someone as an independent contractor? What is at stake for the company when workers aren’t properly classified?
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