Why This Mistake Will Hurt Your Business:
Failure to comply with these requirements may result in having to pay interest and catch up on missed insurance payments.
If you misclassify an employee or contractor, that “mistake” could destroy your business as you would suddenly have to account for tens of thousands of dollars that you didn’t budget for to pay back taxes and fees.
Worst-case scenario, the designer could sell all the work they did for you to a competitor, who could use it to destroy all the goodwill you’ve created for your company.
If you do need one but don’t have one or have a poorly drafted one, then you could have future problems over things like confidentiality, employees poaching customers or other employees, conditions for termination of employment, specific period of employment, hours, and rules and regulations for the office.