Independent Contractor Classification Issues Coming Under Greater Scrutiny
The independent contractor “issue” has become more visible in the last year, Congressional hearings have been held in which legislators have been urged to take action to address the issue of misclassification of employees as independent contractors. Several states have also taken action to apply pressure to companies to revisit classifications. It’s a subject that will likely see even more attention in the future. Legislators have apparently heard enough complaints that some companies unfairly avoid their obligations by using contractors or that there simply is no justifiable reason to treat contractors so differently.
Independent Contractors: A Money Saver and a Great Employer Solution?
The use of independent contractors has increased significantly in the last few years as employers seek to reduce costs and keep their workforces flexible. Whether a worker is an employee or a self-employed independent contractor imposes very different obligations on an employer. Independent contractors are not on the payroll and do not enjoy many of the legal protections and benefits given employees. They also typically don’t count toward minimum thresholds required to determine whether employers are covered by certain federal employment laws. Generally, employers are not required to: