11 Ways to Help Preserve Independent Contractor Status
Employers are still having problems with recognizing the importance of ensuring that an individual is truly an independent contractor. Written agreements are cast to the side if not properly written. In addition, it is important to understand that there are certain guidelines that need to be strictly followed. Here are 11 ways to help preserve independent contractor status.
1. Do not supervise or control the work of the independent contractor. It is acceptable to give detailed guidelines about expected results, but how those results are achieved is up to the worker.
2. Do not provide training or how to do the work.
3. Allow the worker to establish their working hours.
4. Do not tell the worker where the work has to be performed.
5. Do not invite the worker to meetings.
6. Do not provide the worker with handbooks, vacation, or any other rules.
7. Do not reimburse for expenses. They can build those into their compensation.
8. Do not provide the worker with work related benefits such as healthcare etc.
9. Pay by the project where feasible, instead of by the hour.
10. Do not provide tools, supplies or equipment.
11. Use written independent contractor agreements for all but the smallest projects.
Although there are no guarantees it is important to understand that the above guidelines are offered to provide a defense to a later claim that the individual was really an employee and not an independent contractor. If you have any doubts or need help writing the agreement please contact me.