The $150,000 Mistake: How Worker Misclassification Could Bankrupt Your Business
Employment Law Tammie Snow Employment Law Tammie Snow

The $150,000 Mistake: How Worker Misclassification Could Bankrupt Your Business

When Jamie opened her Maine cannabis cultivation facility in 2021, she did what many entrepreneurs do—hired workers as independent contractors to keep things simple. Three growers and a facility manager formed her core team, all classified as contractors.

"They wanted flexibility," Jamie later explained. "They all signed contractor agreements. We even consulted a template from a legal website!"

Fast forward to 2025: Jamie's facing a Department of Labor investigation and potential liability exceeding $150,000 in back wages, liquidated damages, and penalties.

Her costly mistake? Misclassifying employees as independent contractors.

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