‘Tis the Season – Contractor vs. Employees

Littler Publications shares 10 Issues employers need to pay attention to when approaching the holidays. Issue #2 being Contractors vs. Employees when conducting seasonal hiring. 

Littler states as employers prepare for seasonal hiring, they should consider whether to directly hire seasonal employees or engage independent contractors. If the latter, employers should evaluate and confirm the legality of their classification practices.

Further, states have different rules on the classification of independent contractors for different legal purposes (e.g., wage and hour requirements v. unemployment benefits), so it is important to be familiar with all state-level laws on worker classification. While employers may see benefits to retaining contractors, they must be careful to satisfy the applicable test for classification.

Some states have been taking a hard line on worker classification issues, read more here.