HR Glossary

What is Misclassification?

The practice of incorrectly categorizing employees as independent contractors or exempt workers, either intentionally to reduce labor costs or through ignorance of classification rules, resulting in denied worker protections and unpaid taxes and benefits.

Why it matters in hiring

Misclassification comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with M

• Microlearning
• Mid-Year Review
• Minimum Wage
• Minimum Wages Act
• Mobile Recruiting
• Modern Slavery Act
• MOHRE Regulations (UAE)
• Multi-Country Payroll

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.