Independent contractors can be a great way to reduce labor costs and decrease the risk of liability. This is why the use of independent contractors is on the rise in our country. Today’s market is extremely competitive and businesses are forced to seek new and innovative ways to cut costs and gain a competitive advantage. Using independent contractors may give your business the cost-effective edge it needs to compete in today’s fast-paced market. However, there are numerous hidden pitfalls to avoid when entering into a relationship with an independent contractor.
The law has restrictions on who can be considered an independent contractor and who is actually an employee under the law. It is important to understand the law so that your business is not caught off guard. Our business and employment law firm will assist you in auditing your use of independent contractors and defend you if an employment claim arises.Negotiating an Independent Contractor Agreement
Mistakenly, most businesses focus mainly on costs when negotiating independent contractor agreements. Although costs are important, a skilled labor and employment lawyer will understand the important ramifications of contractual provisions that initially seem insignificant to most businesses. For example, a poorly executed independent contractor agreement may not protect your company’s confidential information and may force you to pay for work that was not done correctly. However, a properly drafted contract may provide your business with protection and decrease the risk of being dragged into costly litigation.
Our business and employment law firm can help you audit your current independent contractor agreements, negotiate new agreements, and represent you in a claim for breach of contract.Independent Contractor vs. Employee
There are no isolated factors or single characteristics that determine whether a new hire is considered an independent contractor or an employee. It is the law, not a contractual agreement, that determines who is an independent contract. A misclassification in this area can be extremely costly for your business. In fact, depending on the claim, a misclassified employee may be able to sue you individually and pursue your personal assets to satisfy a judgment placed against the employer.
Our business and employment law firm will audit your employment policies and independent contractor agreements to help minimize risk of costly litigation. Additionally, our law firm will represent you if litigation arises.