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Worker Misclassification Could Cost You Everything | Here's Why

Episode 136 of the The Building Texas Show podcast, hosted by Justin McKenzie, titled "Worker Misclassification Could Cost You Everything | Here's Why" was published on March 2, 2026 and runs 14 minutes.

March 2, 2026 ·14m · The Building Texas Show

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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

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