The independent contractor analysis usually comes about after something has gone wrong. In this video, learn what triggers complaints and investigations.
I once represented a dance studio…that hired independent contractors…to give dance lessons.…These instructors also worked at other studios…as well as for private clients.…They were paid for every class they taught…at the time of teaching.…The owner felt he had to fire one of the instructors…because she missed several scheduled classes,…upsetting the students.…After being fired,…the instructor filed for unemployment benefits…despite having knowingly played…the independent contractor game for many years.…
Big surprise,…the California Employment Development Department, or EDD,…which manages unemployment claims,…wanted to know what other dance instructors…the studio had contracted with…over the three previous years.…That's when the owner knew…he needed to get a lawyer involved.…Talk about a compliance nightmare.…To avoid additional fines and the cost of litigation,…the dance studio settled with the EDD…and began treating all of its instructors as W2 employees,…despite the randomness of their schedules…and the fact most had other dance instruction work…
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