Employee or Independent Contractor?

Classifying Independent Contractors and Employees 

blue question mark button

 

 

From JDsupra, Steven Smith discusses the risks of misclassifying workers, the standards for classification and offers some great recommendations for staying out of trouble.  Steven writes:

Best Practices to Avoid Misclassification Claims

  • Given the potential risk of misclassification, there are some steps companies can take to avoid misclassifying:
  • Draft detailed job descriptions for all positions, including roles filled by independent contractors.
  • Avoiding having independent contractors do the same or similar work as employees.
  • Do not provide independent contractors with supplies, tools or equipment.
  • Do not reimburse independent contractors for work-related expenses.
  • Be willing to give up some control. If you treat them like employees, they will be considered your employees.
  • Compensate independent contractors on a per-job basis rather than by hour or by week, and invoice them.
  • Fully discuss the nature of the relationship with prospective independent contractors, and reduce the understanding to writing.
  • Avoid the outward appearance of an employment relationship (company email address, company phone, etc.).
  • Regularly review the nature of the relationship, and reclassify workers as needed.

Source: Classifying Independent Contractors and Employees – The $100 Million Question | Buchanan Ingersoll & Rooney PC – JDSupra

Back to Top