Episode 136

full
Published on:

2nd Mar 2026

Worker Misclassification Could Cost You Everything | Here's Why

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

Listen for free

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About the Podcast

The Building Texas Show
The Building Texas Show with host, Justin McKenzie, about the balance of business and governance. Each week, we’ll interview the local leaders affecting the issues and uncover the power you have to forge the future.

www.buildingtexasshow.com

About your host

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Justin McKenzie

Based in Boerne, Texas, Justin hosts The Building Texas Show—a podcast spotlighting the bold minds shaping the future of the Lone Star State. When he’s not building teams or building momentum, he’s out exploring, discovering new ideas, or connecting with the people who make it all worthwhile.

As Chief Operating Officer at Charity Ace, Justin helps shape the engine behind the mission—bringing sharp strategy and innovative structure to fuel long-term growth. He believes in business as a force for good, and shows up every day to prove what’s possible when purpose meets execution.