Business clients routinely ask our attorneys whether their workers are actual employees or instead function as independent contractors (ICs). Drawing upon their expertise as employment and business lawyers, Katie Rinkus and Poonam Lakhani discuss the differences between employees and ICs, and why it’s so important for businesses to properly classify their workers.
Katie and Poonam briefly touch upon the laws and agencies that regulate these distinctions, before moving on to why businesses might prefer to use ICs over regular employees. Then they address the legal and financial risks in misclassifying workers and explain two key “tests” for determining who is an employee or an IC. Whether you’re a business owner or a worker, this episode will help you better determine who counts as an employee or an independent contractor.
Stay Connected & Learn More:
Read Katie’s post on worker classification
Read Poonam’s post on the U.S. DOL’s 2024 Final Rule
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