Independent Contractors

Independent contractors are a great resource. Make sure the individual qualifies as an independent contractor and is not actually an employee by California Labor Law Standards. Below is the test to follow to determine the right classification. Remember: it's the employer's obligation to prove that an employee qualifies for an exemption

 

Definitions

Independent contractors are individuals who
perform work for, but do not enter into an
employment relationship with, a hiring party.


Examples include:

  • Is in business for themselves;
  • Pays own taxes and has WC insurance;
  • Has the right to hire their own subcontractors;
  • Makes their services available to the public;
  • Works relatively short-term;
  • Performs their services free from supervision, direction, or the right to control by the hiring party;
  • Uses their own tools or equipment to perform the work;
  • Does not provide services that are integral to the hiring party's business.

 

No Employment Liability

Hiring parties are not required to provide
independent contractors with many of the benefits
they provide to employees (overtime, meal/rest
periods, wage statements, etc.). Hiring parties are also not liable for "employment" claims brought by independent contractors.

Employee, not a Contractor

The following is a temporary employee, not an independent contractor:

  • Hiring someone to work on a discrete project or for a limited time;
  • They're working side by side with your other employees as-if they are an employee;
  • Performing a job that is "core" to the business;
  • Detailed instructions about how, when, where, and what to do are given;
  • They're provided with company "tools" to perform their job duties.

Don't guess! Get it right. Give us a call with your questions at (888) 519-2606 or email us at Info@SloanPS.com