ARTICLES

Hiring Independent Contractors

One of the most pressing and universal concerns for business owners is the identification of areas in which you can minimize your enterprise’s financial obligations. Depending upon the nature of your business, this may include choosing to hire workers as independent contractors instead of as employees.

Doing so absolves you of many of the responsibilities that come with hiring employees, including overtime and benefit regulations. Moreover, you do not have to withhold the federal, state, and Social Security taxes that you would for an employee.

However, it is important that you consider your situation carefully so that you do not violate regulations that are in place to clearly differentiate employees and independent contractors.

To help evaluate the best options for your company, contact the Minneapolis business lawyers of Skjold ▪ Barthel, P.A, at 612-746-2560. We can help you grow your business and reduce the prospects of costly labor litigation later.

Important Independent Contactor Distinctions

Hiring someone as an independent contractor creates a legal and work relationship that is different from an employer-employee bond. That being the case, it is essential that you do not hire independent contractors with the intent to skirt the rules and treat them as if they were employees. Instead, you must understand that you are effectively their client, and while you have the final word on the project or projects for which you assign them, your authority is limited beyond that.

Engaging in the following actions could break the law and violate the rights of persons hired as independent contractors:

• Interfering with an independent contractor’s ability to seek other clients
• Imposing strict daily schedules
• Terminating a contract without cause

Contact Us

Take the effort now to avoid needless hassles later. Contact the Minneapolis business lawyers of Skjold ▪ Barthel, P.A., at 612-746-2560.