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I owned an IT consulting firm in 2000 with 250+ employees. When the bubble burst and I had to shut down the company, 65 of those employees tried to sue me for all kinds of fake claims like unpaid vacation, fake commission numbers, etc. It was going to cost me more to fight the claims than to settle....cost me $148,000.
Some of the people that sued me I had known for years and they knew I had spent everything I had to try and keep the company open. Fucking sucked. I'll never have an employee again.
Having said that, if you outsource make sure you outsource to a company not an individual. Otherwise, if things go sour they can claim they thought they were employees and sue you. Even if you get an I9, have them sign a contract, whatever, they can still sue you and you have to go to court and spend money.
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