Tag Archives: independent contractor

While some “temporary” workers are employed by a staffing agency, other workers contract directly with a company as consultants or independent contractors. In the case of these contractors, the question often arises — how long can we keep contracting with this person? While there is not a bright line answer to this question, there are best practices and sliding-scale risks that increase over time as the relationship continues. Getting the answer right is important because a wrong answer implicates potential liability under many laws that treat employees very differently than independent contractors. Some of these laws include the FLSA (minimum wage and overtime requirements apply to employees but not to independent contractors), workers’ comp and unemployment (premium payment obligations required for employees but not independent contractors), IRS rules (income tax and FICA requirements apply differently to employees), and ERISA (benefits may be required under company policy for employees). Continue reading this entry