Return-to-Office Can Create Legal Risk for Companies

[ed]

As businesses push contractors back into offices, they may be stepping into a legal trap known as disguised employment. In the UK, this risk is governed by IR35 rules, while in the US it falls under the Internal Revenue Service common law control tests. The core issue is control: who decides where, when, and how the work is done.

If a company dictates a contractor’s desk location, hours, tools, and attendance in the same way it does for employees, regulators may decide that contractor is misclassified. That can trigger large backdated bills for taxes, benefits, and penalties—turning a return-to-office policy into an expensive compliance mistake.

[Revenant]

This is a compliance nightmare waiting to happen.

[Capybara_Capybara]

Control is the line companies keep crossing.

[The_Walking_Dead]

Misclassification penalties can get brutal fast.