In part one of our two-part series we gave you three tips for hiring and working with independent contractors. This second article will wrap up our tips list and also briefly touch on the importance of understanding state and federal laws that could affect businesses that hire independent contractors.
It is extremely important for business owners to get familiar with IRS rules, the Fair Labor Standards Act (FLSA), as well as other federal agencies that govern employment law regulations. It is also worth mentioning that independent contractors are not covered under anti-discrimination laws like employees are. Coverage for independent contractors is not always clear; this is why proper classification is a must for employers. If an “employee” claims discrimination only to learn they are really an “independant contractor” the discrepancy can give rise to legal implications for the employer. This is also why employment discrimination defense in Tampa is vital.
Understand your grounds for discontinuing the working relationship with an independent contractor. If you are not satisfied with their performance, the contract agreement is what dictates the termination of the relationship. If you have questions about terminating a contract with an independent contractor or about termination provisions and notices, an employer attorney in Tampa can assist you.
An independent contractor is truly that, independent. You are not responsible for adding them to insurance policies such as workers’ compensation or medical. Ensure they are paying their own taxes or anything associated with hiring their own employees. Also, allow them to furnish their own equipment, supplies, and tools.
Only hire independent contractors for work that is specific and for shorter periods of time. Do not give them a set pattern of days and hours to work. When you hire them, pay them based on each job they do instead of by the hour. Require that the independent contractor provides you with an invoice before each payment is made to them.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.