Worker Misclassification Could Cost You Everything | Here's Why

Worker Misclassification Could Cost You Everything | Here's Why

From The Building Texas Show by Justin McKenzie

March 2, 2026 · 14 min · Season 3 · Episode 136

About this episode

This episode discusses the critical issue of worker misclassification and its implications for businesses in Texas.

Are you classifying your workers correctly? The difference between a 1099 contractor and a W-2 employee isn't a choice — it's the law. And getting it wrong can cost your business everything. In this episode of The Building Texas Show, host Justin McKenzie sits down with Neil Katz, CEO of Exceptional HR Solutions, to break down one of the biggest HR risks facing growing businesses in Texas: worker misclassification. Neil shares 25+ years of HR expertise and explains why fractional HR services are a game-changer for leaders spending too much time on people problems instead of building their business. 🔑 What you'll learn: • The real difference between 1099 contractors and W-2 employees • Why workers don't get to choose their classification • What triggers audits and lawsuits around misclassification • How fractional HR helps growing companies manage risk • Why Neil's simple rule — "When in doubt, hire as W-2" — could save your business Connect with Neil Katz & Exceptional HR Solutions: https://www.exceptionalhrsolutions.com

People in this episode

Host: Justin McKenzie

Guest: Neil Katz

Topics covered

  • worker misclassification
  • HR risks
  • 1099 contractors
  • W-2 employees
  • fractional HR services
  • business management

Keywords

  • worker misclassification
  • 1099 contractor
  • W-2 employee
  • HR expertise
  • audits
  • lawsuits
  • fractional HR
  • business risk

Mentioned in this episode

Organizations: Exceptional HR Solutions

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