The Clayton Law Firm Successfully Defends Business and Owner Against Claims of Employee Misclassification

January 4, 2019

In a case filed in the Montgomery County Circuit Court, the Clayton Law Firm defended Global Express Limousine, Inc. and its owner against claims of tax fraud employee misclassification in violation of 26 USC Section 7434.  The lawsuit alleged among other things, that the Defendants had improperly designated the Plaintiff as a independent contractor as opposed to as an employee under the Fair Labor Standards Act.

 

The stakes in the litigation were very high since penalties for worker misclassification can be quite severe.  In this instance, the complaint asked that the Defendants be responsible for payment of treble (i.e., triple) damages, Plaintiff's costs and attorneys' fees.  

 

The case proceeded to trial on all issues.  At the close of evidence, the judge ruled in favor of the Defendants, finding no evidence to support the tax fraud worker misclassification claim.

 

Are you uncertain whether your workers are properly classified?  Contact the Clayton Law Firm for a consultation on this and the many other important issues relating to your business. 

 

 

 

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