From the course: Hiring Contract Employees
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Additional legal exposures
There are a number of additional exposures created by the independent contractor employer relationship. The misclassification of an independent contractor has other repercussions, including but not limited to licensing statues, anti-discrimination statutes, OSHA obligations, company benefits, and the ownership of the work product generated during the contract. First, let's talk about licensing. I know of an insurance broker who brought on an independent sales rep only to find out that he'd been unlicensed for the last three years of selling for them. I know of licensing horror stories when it comes to everyone from attorneys and engineers, and even daycare workers. Bottom line is if they should be licensed, you had better make sure they are prior to bringing them onboard. Anti-discrimination is another area where companies get caught. Employers are required to provide a workplace free from harassment and discrimination. Several state courts have allowed independent contractors to…
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