“(The hotel) industry in particular has a tradition of using staffing companies and other staffing arrangements to provide workers, and I think that industry tradition has provided problems for some hotel companies,â€
“Hotel companies need to be ahead of the law…do a self-audit … If you’re not compliant, you can take remedial measures to avoid fines from the Department of Labor.â€
As the U.S. Department of Labor under the Obama administration is cracking down harder on violations, staying informed about employee misclassification is crucial for hotel operators if they want to avoid costly fines, according to employment attorneys.
Because employment laws often can be complicated, Feldstein suggests employers classify employees themselves by applying the “Right-to-Control†test.
The Right-to-Control test compares the ends versus the means in producing the work the employee was hired to do. If the employer is concerned with only the end result, the employee should be classified an independent contractor.
However, if the employer controls the means and methods of the project in addition to establishing the routine and schedule, it is likely the worker should be classified an employee.
Should an employer need further information, the U.S. Department of Labor website contains basic guidelines that serve as a good starting point, Chapman said.
“There are HR organizations such as (the Society for Human Resource Management) that conduct training and research and guidance on this law and others, which can be helpful,†he said.
Applying the law to a specific set of facts to determine whether or not that individual should be classified as an employee or independent contractor might require the help of an actual practicing attorney, Chapman said.
For more:Â http://www.hotelnewsnow.com/Articles.aspx/8674/Classify-employees-properly-to-avoid-penalty
