Employees, Contractors, Exempt, Non-Exempt – Focus on Hiring the Best

Written by James Sanders

Business owners are focused on how to grow their business in the most profitable manner.  With a still tight, albeit softening, labor market, employers look for ways to meet their staffing needs, while trying to control their expenses. 

It is important to understand that on-boarding 1099 contractors, hourly staff, salary staff and so on each come with specific rules and regulations.  If you are over 50 employees, you have a different set of rules from those with less than 50 employees and each State has its own nuances.  To shed some light on the situation, below are some helpful articles:

• 1099 Vs. W-2 : What’s The Difference? – Forbes Advisor
• Difference Between Exempt and Nonexempt Employees – businessnewsdaily.com
• The Ever-Changing Independent Contractor Classification in the U.S. – National Law Review

If you need help, reach out to an HR professional or a Business/Labor Attorney.  Unfortunately, classifying a staff member the wrong way can have some serious consequences if an issue arises.

Regardless of how you classify a new member of the team, it’s important to keep in mind that you want to bring on the best available talent you can as a business owner. 

“I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.” – Larry Bossidy