How someone is paid is one of the factors considered in the independent contractor analysis. In this video, learn how compensation affects the analysis.
Lina was rushing to get a large project in on time,…so she hired a freelancer she found…on the other side of town to help her get her job done.…They agreed on an hourly rate.…He worked all day on the project,…and sometimes into the evening.…He provided a weekly timesheet and she paid him accordingly.…All went well for three months until they had an argument…about his hours, and she fired him.…Well, lo and behold, he filed a wage claim…for unpaid overtime and an unemployment claim,…both of which he won.…
The agencies both ruled that he was an employee…primarily because of how we was paid and managed.…It made no difference that he was a remote worker…because Lina managed and controlled his work product…and paid him hourly.…How a worker gets paid says a lot about their status.…Just because you pay them the way they agreed to be paid…does not make them an independent contractor.…This is because you can't contract around the law.…Remember, independent contractors are generally paid…for the job done and not the hours worked.…
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- Legal requirements for classifying independent contractors
- Financial and strategic benefits of contract employees
- Downsides of misclassification
- What triggers complaints and investigations?
- Licensing statutes, permit requirements, and anti-discrimination statutes
- Preventing misclassification claims
- Considering an SS-8 ruling
- Amnesty programs