Sam spent 60 hours working on a project for your company last week, for which the business paid Sam $1,000. The company treated Sam as an independent contractor. But, what if Sam was actually an employee instead? As far as the U.S. Department of Labor is concerned, “misclassified employees often are denied access to critical benefits and protections they are entitled to by law, such as the minimum wage, overtime compensation, family and medical leave, unemployment insurance, and safe workplaces.”
Despite near record unemployment during the Covid-19 recession, plenty of employers will face major challenges in hiring low-skill, entry-level workers when economic conditions improve. This is, in part, because the overall U.S. workforce will grow only 0.4 percent in the next several decades. A big part of the problem of finding low-skill workers is the barriers employers create when they focus on screening people out. Typical staffing processes are costly, time-consuming, and repeated endlessly. Businesses spend about $4,100 per employee processing resumes, then conducting interviews, background checks, and drug tests.
American manufacturers have gotten better at safeguarding their factory floors and containing infections of Covid-19 in their workforces. Despite the progress, they are still struggling to find enough people to staff their plants. The worker shortages are choking supply chains and delaying delivery of everything from car parts to candles just as demand is picking up.
Could your business benefit from our expertise on background checks, EEOC compliance, drug screenings, workplace policies, and solutions to your HR needs? Contact KRESS today for exemplary customer service and a custom solution for your needs. We are here to help.