The Klein Law Group P.C. New York Workers' Compensation, Social Security Disability, Personal Injury and Employment Law
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INDEPENDENT CONTRACTOR OR EMPLOYEE--PROTECT YOURSELF FROM A COSTLY MISTAKE

It's close to impossible to run a small business in New York these days. Rules, regulations, taxes, and insurance create a terrible burden on businesspeople trying to build a future for themselves and their families.

It can be tempting to classify your workers as independent contractors-but it can cost you far more money than it's worth. Failure to carry a workers' compensation policy can expose you a criminal action, to a law suit, and to financial penalties. Even a good faith misclassification may put you and your business in a ruinous position.

So what is an independent contractor? There is no easy-to-use definition-the Workers' Compensation judge makes the ultimate decision. But here are the factors that the judge will look for: do you or your employee control how the work is done? Who controls the work schedule? Is pay by the hour/week, or by the job? Do you supply the tools and other equipment or does your employee/independent contractor supply them? Finally, the judge will look at other factors, such as whether the "independent contractor" works for you all the time, or works for other companies at the same time.

If you have any question about the difference between an independent contractor and an employee, feel free to call me at once for a free consultation.

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