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When workers are misclassified, everyone loses
Worker Classification is important. It determines an employer's legal obligations for:
Worker misclassification occurs when an employer treats individuals as independent contractors when they are employees. Under the law, workers are presumed to be employees unless the employer proves that workers meet the legal criteria to be independent contractors.
EMPLOYEES who are misclassified as independent contractors:
EMPLOYERS who misclassify workers as independent contractors avoid:
EMPLOYERS who misclassify workers as independent contractors gain an unfair competitive advantage against other employers
DWD vigorously investigates misclassification, and when it's found, employers can face:
Employers are required by law to correctly classify each worker as either an "employee" or "independent contractor." View the Steps to Classify a Worker at the bottom of the page to determine if a worker is an employee or independent contractor.
The links below will guide you through Wisconsin’s worker classification laws. Select the appropriate law(s) to begin the process to evaluate how to correctly classify a worker as either an employee or independent contractor:
Report Suspected Worker Misclassification