Littler on Classifying Workers: Employees v. Independent Contractors, Joint Employees, & Other Contingent Workforce Issues

Scope of Discussion. A company’s legal obligation to its workers under the various employment and labor laws depends primarily on whether the workers are considered employees under the applicable statute. The discussion below sets forth the different tests used to determine employee status and is contrasted against proper or improper independent contractor status. The discussion also captures the added complexity when a company employs a contingent workforce. The term contingent labor refers to workforce relationships outside the traditional, full-time employee model and often includes third-party staffing where staffing firms recruit, hire and employ the workers; outsourcing companies that totally manage a specific business function for their clients, often on the business premises of their clients; professional employer organizations (PEOs) which provide administrative support to workers recruited and supervised by their client-companies; and leasing firms that provide a hybrid of administrative services to a company. Practical guidance is also included in the form of an independent contractor questionnaire, a sample independent contractor agreement and additional guidelines on structuring a third-party, contingent workforce relationship.

 

Call 1.866.773.2782 or click here to purchase.

#1 Legal Research App

Winner of the prestigious American Association of Law Libraries (New Product) Award, Fastcase for iOS, Android, and Windows Phone is used by more attorneys than any other legal app according to the ABA. Anyone may use the app for free to access Fastcase's comprehensive legal research database on the go.