“Hiring” Independent Contractors Versus Employees: What You Need to Know

 Posted on July 19, 2023 in Employee Misclassification

As a business owner, you likely take great pride in your work. Yet, when too many tasks fall on the shoulders of one individual, the quality of that person’s work may slip and deadlines may be missed. If you are thinking about hiring someone to help lighten your company’s workload, it is important to understand what your options are and the potential benefits and drawbacks of embracing each approach.

Generally speaking, you can hire employees or you can engage the services of independent contractors. Even if you opt to work with an employment vendor, you will need to understand the implications of whether that vendor’s workers are classified as independent contractors versus employees of that company. This information can help you to make informed choices that could impact your company’s risk of liability, its internal practices, and your obligations to those new people who will help you to operate your business.

Employees 

If you want to exert maximum control over how a worker performs their duties, you will want to hire employees. The fact that an employer asserts authority over the business aspects of a particular worker’s job is the defining difference between an employee and an independent contractor.

Know that hiring employees costs more than engaging the services of independent contractors, partially because employees are entitled to certain benefits and privileges under the law that independent contractors are not entitled to. Do not make the mistake of trying to engage the services of an independent contractor while controlling their job functions in the name of saving money, though. This phenomenon is known as misclassification and it can leave your company vulnerable to liability.

Independent Contractors

If you are looking to complete work that is not necessarily vital to your core business, so you can have less control of the business aspects of a worker’s approach without suffering significant risk, you may want to consider working directly with independent contractors or accessing their services via an employment vendor. Just keep in mind that contractor workloads can only be controlled by your company to a certain extent.

Contact a Schaumburg, IL Employment Lawyer for Free Today to Learn More

In order to make the best possible decisions on behalf of your company, you need to be advised as to how the nuances of the law apply to your operations. By scheduling a free case evaluation with the reputable Schaumburg, Illinois employment lawyer at The Miller Law Firm, P.C., you can receive personalized guidance that can help you to make sound choices concerning your workforce moving forward. To get started, you can submit a contact form on the firm’s website or you can call the office directly at 847-995-1205 to schedule your risk-free, confidential consultation at no cost. Attorney Richard J. Miller looks forward to hearing from you.

Source:

https://www.acf.hhs.gov/css/training-technical-assistance/whats-difference-between-independent-contractor-and-employee