Intend is here to help unravel the mysteries of independent contractor worker classification to ensure that you are able to obtain the talent you need while mitigating legal and financial risk to your company

It just takes a quick search on the Internet under the topic of worker classification to see that the engagement of independent contractors is receiving significant attention from the government at both the federal and state levels as well as ongoing lawsuits both federally and at the state level.

The use of independent contractors is a strategic way for companies to obtain necessary talent and will continue to be the case in the workforce landscape, which seeks flexibility and specialized skills. However, the government is the ever-present regulatory force in place to ensure that it receives the revenue it feels is due to them through employment taxation and also that the rights of workers are protected. It is the continued interest of companies to use independent contractors combined with the government’s regulatory requirements/scrutiny and ongoing lawsuits that create the need for proper worker classification of this important group of workers.

Many companies erroneously, and generally without malicious intent, either don’t consider proper classification of independent contractors or they attempt to make an assessment without having the required expertise to do so. Both approaches can result in misclassification, which can present definite legal and financial risk to the company.  Read more -->

As with many things involving the government and legal matters, classification of independent contractors is not a black and white, simple “check the box” assessment. It is instead a complicated assessment of myriad factors regarding the prospective or existent engagement and the final determination is based on the preponderance of the evidence supporting either that the individual classifies as an independent contractor or is instead truly an employee of the company. Therein lies the risk…if the worker should be an employee; the company must fulfill its employment obligations to the worker and also to the government from a tax perspective. Failing to do so can result in financial impact due to penalties, back taxes, as well as other financial obligations such as unpaid overtime in the event that the worker should have been overtime eligible pursuant to the Fair Labor Standards Act.