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EPISODE 22: Call Them a Contractor—Lose Thousands Later


Contractor or Employee? The Costly Mistake Wellness Studios Keep Making
A studio owner wanted to fire a toxic team member—only to find out they’d been misclassifying them as a contractor for years. The result? Legal leverage lost, thousands paid in settlement, and weeks of stress that could’ve been avoided with the right agreement.
 
Why This Happens
In the wellness world, hiring “contractors” seems easier and cheaper—but most business owners don’t understand the legal test behind that label. Simply calling someone a contractor doesn’t make it true in the eyes of the law.
 
How It Gets Messy
When relationships with staff break down, misclassification gives workers legal leverage. If they’ve been treated like employees, they can file complaints or threaten audits—and suddenly, you’re forced to negotiate from a weak position.
 
What Could’ve Prevented It
A strategic hiring process and an industry-specific agreement aligned with how work is actually performed. When your contracts match your operations, you stay legally protected—and in control.
 
Key Takeaways
✔️ Calling someone a contractor doesn’t make it legal
✔️ Misclassification can trigger audits or settlements
✔️ Laws vary by state and center on control and behavior
✔️ Working with an industry-specific lawyer avoids costly mistakes
 
🎧 Don’t let a misclassified contractor hijack your business. Press play now.
 
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Cory Sterling

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Law Meets Heart: The Conscious Counsel Podcast

Running a wellness business doesn’t mean you have to fear the legal side. We break down the law in a way that’s practical, empowering, and actually enjoyable.

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Heart-leading health and wellness entrepreneurs, we've got your back. The Conscious Counsel Podcast is the go-to resource for business growth and legal advice for practitioners, solopreneurs, and small businesses dedicated to making a positive impact and spreading love and wellness throughout the world.


Law meets heart. Hosted by Cory Sterling, this podcast shares real stories, practical insights, and legal wisdom for wellness entrepreneurs, fitness professionals, and heart-led business owners. Whether you’re scaling your studio, launching a retreat, or just want to make law feel less scary—this show is for you.


Whether you’re a yoga teacher, personal trainer, life coach, or holistic health professional, this podcast gives you the guidance, support, and protection you need without the confusing legal jargon. Tune in for enlightening conversations with experts, industry-specific legal guidance, and real-life case studies of conscious businesses. You do what you do to make the world a better place, and this podcast is here to clear the path so you can show up fully in your gifts. And, if you need legal help, why not get it from a lawyer who loves you?

Cory Sterling

Lawyer & Founder of Conscious Counsel

Cory is a heart-led lawyer, entrepreneur, and podcast host making law fun, accessible, and empowering for wellness professionals around the world.

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