labor classification

Labor classification refers to the categorization of workers based on their roles, skills, and employment status within an organization or industry. This system helps determine wages, benefits, and employment terms. Common classifications include full-time, part-time, hourly, salaried, temporary, and contract workers. Each classification affects pay structure, job responsibilities, and legal rights. Proper classification ensures compliance with labor laws and fair treatment of employees, while also aiding organizations in workforce planning and management.