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ARTICLE · 28 DECEMBER 2016

Classification: Employees Or Contractors

Are your workers independent contractors or employees? If you classify them incorrectly, you could be in for some costly headaches and compliance issues.

United StatesEmployment and HR
Goldin Peiser & Peiser, LLP
Goldin Peiser & Peiser, LLP

Are your workers independent contractors or employees? If you classify them incorrectly, you could be in for some costly headaches and compliance issues. Rigzone has a few tips for distinguishing the two classifications:

  • Right to Control – "Employees" are told by their employer when, where and how their job is to be done. "Contractors" may be told what the final result should be, but not how to get there. 
  • Integration – Employees' work is part of the employer's business operations. Contractors' work is separate from and often unrelated to the product or service of the employer's business. Having employees and contractors who perform the same tasks usually means the contractors are misclassified.

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