Employers may choose to classify workers as independent contractors rather than employees for several reasons. Some seek to avoid employment tax, workers compensation costs, and overtime wage rates. Some hope to steer clear of employment laws such as the Fair Labor Standards Act, Title VII of the Civil Rights Act, the Americans with Disabilities Act, or the Age Discrimination in Employment Act. Others simply look to independent contractors because they provide a more flexible and less permanent workforce than traditional employees.

In the day-to-day rush of business, it’s easy to overlook key employment issues, but they have a way of turning into true headaches for HR professionals. Below are five HR matters that have a habit of becoming bigger problems for employers, and if you aren’t paying attention to them, you may be putting the business at serious risk.

The distinction between independent contractors and employees carries more burdens, consequences, and decisions than ever before. In addition to the tax consequences, there are health care compliance consequences, workers’ compensation consequences, and even intellectual property consequences. Understanding the consequences of misclassification is paramount to properly structure an employer’s workforce.