EMPLOYMENT LAW MADE UN-SCARY: INDEPENDENT CONTRACTORS
Employment laws can be confusing and downright scary.
They don’t have to be. As a public service, from now until my special Halloween webinar Answers to the World’s Scariest Employment Law Questions, I’ll be tackling each major law one by one to give you what you REALLY need to know. By the end, you’ll have handy one-page cheat sheets for each and every law and your terror level will be reduced to zero.
Today’s Topic: Independent Contractors
Here is basically everything you need to know about independent contractors in one handy post.
INDEPENDENT CONTRACTOR CHEAT SHEET
This handy little checklist is a guide to help you determine whether an individual is an actual independent contractor. Generally, the more “yes” answers you have, the more likely it is that a person is an IC. As always, please please please consult with your legal counsel before making any final decisions.
- Is the individual working on a discrete project that is limited in time (versus work that is ongoing and integral to the company’s normal business functions)?
___Yes ___No - Does the work involve special skills and training not currently possessed by company employees?
___Yes ___No - Does the work involve skills and training which the individual already possesses (versus skills for which the individual needs training from the company)?
___Yes ___No - Does the individual pay for his/her own business expenses?
___Yes ___No - Does the individual pay for his/her own travel?
___Yes ___No - Is the individual responsible for his/her own federal and state taxes?
___Yes ___No - Is the individual paid a set price per project or on a straight commission basis (versus on a set schedule in the form of a salary, regular wage or piece-rate)?
___Yes ___No - Does the individual provide the company with invoices for fees (versus time sheets)?
___Yes ___No - Does the individual offer his/her services to entities other than the company?
___Yes ___No - Is the individual free to accept projects from other entities?
___Yes ___No - Does the individual have a distinct occupation?
___Yes ___No - Is the individual self-employed?
___Yes ___No - Is the individual performing services for the company as part of his/her own independently established business?
___Yes ___No - Are the manner and means for achieving the specified results left to the individual’s discretion?
___Yes ___No - Are the individual’s hours, places, order and sequencing of the work left to his/her discretion?
___Yes ___No - Is the individual free of extensive supervision, especially in regards to the means and manner of performance?
___Yes ___No - Is the work performed at a location separate from the company premises?
___Yes ___No - Does the individual have a significant investment in the facilities or equipment which will be used in performing the work (i.e., does s/he provide the necessary tools, equipment and material for the performance of the work)?
___Yes ___No - Is the individual permitted to select, direct and pay anyone who will assist in achieving the desired results?
___Yes ___No - Is dismissal of the individual premised on some type of failure to comply with an agreement, such as a failure to perform work (versus the individual being subject to “dismissal at any time for any reason”)?
___Yes ___No - Is there an understood consequence to the individual for quitting prior to the completion of the project?
___Yes ___No - Is the individual free to reject additional projects from the company?
___Yes ___No
Stay tuned for more. Tomorrow we’ll de-scare-ify the National Labor Relations Act (NLRA).
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