When Facebook gained major public attention during the first half of the 2000s, people were finally given an acceptable way to define those relationships that were beyond acquaintanceship, but were not quite official. The "it's complicated" status became a symbol of the in-between phase that gives two parties enough freedom to determine if they are in or out with no strings attached.

While this might seem like an idea that's exclusive to singles, it's actually prevalent in the workplace and can lead to payroll processing and employee benefits issues. Too many employers and employees are caught in the "are we, or aren't we?" dilemma, during which they decide if they want to be in an official employment relationship. Similar to circumstances involving eligible individuals, these situations may not turn out as hoped and can have devastating consequences.

Take Universal Contracting, for example. The Department of Labor (DOL) recently revealed that the company had been refusing to file laborers as employees, a mistake that may be expensive in the long run. Mis​classifying workers as independent contractors to avoid calling them employees (and having to meet the obligations that come with that title) is a violation of the Fair Labor Standards Act (FLSA) that is punishable by law.

"The department is vigorously pursuing corrective action in those situations where misclassified workers are actually employees, to ensure that they are paid required wages and to level the playing field for employers who play by the rules," said the regional administrator for the Wage and Hour Division's Southwest district office.

The DOL is seeking back wages for 800 workers' time and attendance to make up for this violation, including standard wages and overtime compensation.

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