Client Case Study: Are you afraid of terminating a team member because of employment laws?

Contract Termination to Talent Overhaul

A client approached us because they wanted to end an independent contractor's contract but hesitated as they thought the contractor was misclassified. In fact, the executives believed they had misclassified everyone-treating all hires as 1099 workers as they ramped up.

What did we do?

• Audited their classifications.

• 90 Showed them the options to bring themselves into compliance.

• Outlined the timeline for ticking through the statute of limitations.

Even then, there was hesitation. So we asked, if you're unwilling to fire a poor hire because of non-compliance, how else is this affecting your company? They ultimately moved forward. Here is what happened:

• People who belonged to employee status were moved to that position.

• People who could fit either status were offered employee status.

• The person who inspired the discussion was determined to be correctly classified as an independent contractor, and their contract was terminated.

The result was a complete overhaul of the company's talent pool. With a new system, employees were held responsible for their actions, leading to a more committed workforce who no longer saw poor performance go unpunished.