The good news is that there things you can do to prevent misclassification claims. In this video, learn about eleven simple steps you and the company can take to reduce your legal exposures.
I've been sharing with you both the benefits…and the risks of working with independent contractors…throughout this course.…Combining and wrapping up all that knowledge together,…I'm going to share a list of 11 steps you can take…to prevent independent contractor misclassification claims.…Number one, don't have independent contractors…go through the usual hiring process for your employees.…For example, don't have them fill out a job application.…Number two, when you hire independent contractors,…learn as much as you can about their background.…
Check their websites, LinkedIn page,…conduct a vigorous interview, check references,…and conduct background checks where appropriate.…Number three, obtain a business card, advertisement,…brochure, professional license, business license,…and W-9 from the independent contractor.…Even better, obtain a proof…of Employer Identification Number…known as an EIN where possible.…Number four, file an IRS 1099 form…for the independent contractor's wages.…
Number five, keep the independent contractor's files…
DISCLAIMER: This course addresses US law concepts that may not apply in all countries. LinkedIn (including Lynda.com) and the instructor are not giving legal advice. Neither Linkedin (including Lynda.com) nor the instructor represent you. The information conveyed through this course is similar to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views and legal interpretations presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- 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