Customer Service Specialist (CSS) Practice Exam

Treating a worker as 'contract labor' when they should be classified as an employee can lead to several negative consequences, all of which can significantly impact both the worker and the organization.

Firstly, when a worker realizes they are classified as contract labor but believes they should be treated as an employee, it can foster resentment. This resentment stems from a feeling of unfair treatment, as the worker may feel deprived of benefits and protections that regular employees typically receive, such as health insurance, retirement plans, and job security.

Additionally, this misclassification can erode trust between the employee and management. If a worker suspects that the company is not being transparent or ethical regarding their employment status, it can lead to a broader distrust of management. This feeling of betrayal can affect the employee's overall engagement and motivation, resulting in lower productivity and morale.

Moreover, the potential for legal repercussions is significant. If a worker believes they are misclassified and report it to wage-hour agencies, it can lead to investigations. These investigations can incur costs for the company in the form of fines or back pay owed to the employee, further complicating the situation and straining resources.

Considering all these factors, it is clear that treating a worker as contract labor can have multiple negative consequences