Independent Contractor Classification | Practical Law

Independent Contractor Classification | Practical Law

A Practice Note discussing the classification of individuals as independent contractors, including how companies benefit from engaging independent contractors, the tests for independent contractor status, including the economic realities test under the Fair Labor Standards Act (FLSA) and the Internal Revenue Service's (IRS) control test, penalties for misclassification, recordkeeping, and best practices. This Note addresses federal law. State and local law may impose different or additional requirements when engaging independent contractors.

Independent Contractor Classification

Practical Law Practice Note 4-503-3970 (Approx. 45 pages)

Independent Contractor Classification

by Gabrielle Wirth, Dorsey & Whitney LLP, with Practical Law Labor & Employment
Maintained • USA (National/Federal)
A Practice Note discussing the classification of individuals as independent contractors, including how companies benefit from engaging independent contractors, the tests for independent contractor status, including the economic realities test under the Fair Labor Standards Act (FLSA) and the Internal Revenue Service's (IRS) control test, penalties for misclassification, recordkeeping, and best practices. This Note addresses federal law. State and local law may impose different or additional requirements when engaging independent contractors.