New Tools Now Available for Hiring and Managing Independent Contractors
Author: Michael Cardman, Brightmine Legal Editor
Hiring and managing independent contractors are among the most complicated tasks facing human resources professionals today. Many different factors must be weighed to correctly classify a worker, and no single factor is the final word. If that weren't challenging enough, these factors often vary significantly under both state and federal tax, wage and hour, unemployment and workers' compensation laws.
The risks of misclassifying an employee are significant, potentially including back taxes, workers' compensation, health and welfare benefits and other liabilities. Plaintiffs' attorneys continue to file lawsuits alleging misclassification, and the Obama administration is seeking more funding to combat misclassification.
To help an employer avoid liability, HR & Compliance Center is pleased to announce the addition of several new tools:
- How to Hire an Independent Contractor, which provides step-by-step guidance for taking on a new independent contractor;
- How to Manage an Independent Contractor, outlining what actions should be taken to ensure a project is completed properly without creating an employer-employee relationship;
- How to Reclassify an Independent Contractor as an Employee, which details the process for voluntarily reclassifying independent contractors as employees, either as the result of a settlement or order, or as a preventive measure to limit future liability;
- A sample Independent Contractor Agreement that can be customized to detail project, deadlines, payment arrangements and termination provisions;
- A Required Documentation for Independent Contractors - Checklist listing the documents that can help support an independent contractor relationship in the event of a lawsuit or audit; and
- An internal Independent Contractor Policy laying out procedures for supervisors to follow when identifying, engaging and paying independent contractors.