Independent Contractors

Agencies and courts continue to scrutinize the independent contractor relationship to ensure that workers are not improperly classified.  Proper classification is important because workers may be denied things like overtime, unemployment insurance, or medical insurance if they are treated as independent contractors instead of employees.
The fact that a worker has signed an independent contractor agreement is not determinative of whether the working relationship between the parties was properly classified.  The classification of an individual as an employee or independent contractor is complex and nuanced, and there are serious consequences if it is not done properly.  To better understand and ensure compliance in this area, HEC encourages members to devote time this month to auditing their independent contractor classifications.  HECʻs Summary of Independent Contractor Laws will assist in this process by providing more information on the independent contractor tests utilized by courts and agencies in assessing independent contractor status under a sampling of employment laws.
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