Legal Pitfalls Regarding Independent Contractors


Overview/Description
Target Audience
Expected Duration
Lesson Objectives
Course Number



Overview/Description
Managing workers is a crucial component of your success as a manager. But not all workers are created workers. Some are employees, others are nonemployees, or independent contractors. This is an important distinction, because your company's obligations differ depending upon how workers are classified. Misclassification can result in stiff fines, penalties and back pay and benefit liability. This course will examine the various aspects of hiring and managing independent contractors. You will summarize the hazards of misclassification, learn how to classify workers, and analyze strategies to make sure you don't inadvertently convert independent contractors to employees by your management practices. Thus prepared, you will be able to use independent contractors as needed to meet your organization's staffing needs without concern about legal liabilities from misclassification.

Target Audience
Managers and human resource personnel responsible for adding workers to handle peak periods, special projects or other short-term staffing needs

Expected Duration (hours)
3.0

Lesson Objectives

Tax Laws

  • recognize the benefits of classifying workers correctly with respect to tax laws.
  • identify consequences of misclassification of employees as independent contractors under federal and state tax laws.
  • determine if a given organization is entitled to relief under the IRS Code's "safe harbor" (Sec. 530) provisions.
  • identify examples of criteria used by the IRS in worker classification decisions.
  • apply IRS criteria to determine whether workers are employees or independent contractors in a given situation.
  • Labor Laws

  • recognize the benefits of determining worker status (independent contractor or regular employee) for purposes of how they are to be treated under particular labor laws.
  • recognize what labor law has been violated in a given scenario and predict the consequences to the organization.
  • match the appropriate tests to determine worker status to the various labor laws.
  • analyze given scenarios to determine if workers are employees or independent contractors for purposes of various labor laws.
  • Anti-discrimination Laws

  • recognize the benefits of determining worker status for purposes of federal anti-discrimination laws.
  • select possible organizational consequences for misclassifying workers under various anti-discrimination laws.
  • identify the relevant tests for determining worker status under anti-discrimination laws.
  • Course Number:
    MGMT0704