Employers face challenges in navigating the evolving landscape of independent contractor classification, but it is crucial to understand and mitigate the associated liabilities. Misclassification extends beyond tax reporting and can result in civil and criminal lawsuits under the Fair Labor Standards Act. Employers may be held accountable for back pay, unpaid taxes, benefits, and other fees. There is no universal test for independent contractor status in litigation. The article provides 12 best practices to avoid misclassification suits… Written agreements, W-9 Forms, no job titles, separate files, no employee benefits, no evaluations, competitor analysis, limited control, job differentiation, agreed-upon payment, and avoiding indicators of employee status. Implementing these practices helps safeguard employers and ensure compliance in the gig economy.