Independent Contractors in the Workplace

Your company is considering changing the classification of a substantial portion of its workers as independent contractors instead of employees. The Board of Directors has asked you to analyze the proposed change by discussing the concept of an “independent contractor” in employment law and the legal distinction between characterizing a worker as an independent contractor or as an employee. Explain the requirements to be considered an independent contractor as opposed to an employee, and what benefits, if any, an employer gains by hiring independent contractors as opposed to employees. Discuss the legal implications to an employer if its workers are considered employees or independent contractors under state and federal employment laws, as well as the consequences to an employer if it mischaracterizes the status of its employee as an independent contractor. Cite current case examples relating to the issue of whether workers are employees or independent contractors.