
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
Explore listener stats, chart rankings, contacts and more on the The Building Texas Show podcast page.