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Independent Contractor Toolkit
Practical Law Toolkit 7-572-4225 (Approx. 13 pages)
Independent Contractor Toolkit
by Practical Law Labor & Employment
| Maintained • USA (National/Federal) |
Resources concerning independent contractor classification compliance and litigation under the federal Fair Labor Standards Act (FLSA), including classification issues, discovery requests, sample agreements, presentation materials, and best practices. For resources addressing independent contractor issues under state law, see State Wage and Hour Claims Toolkit.
Engaging independent contractors instead of employees can mean considerable cost savings and increased workforce flexibility.
Proper classification of workers as independent contractors, however, is not as simple as a written agreement between the parties. No single test exists to evaluate independent contractor status for all purposes and compliance is often complicated by the fact that different tests may apply.
The consequences of misclassifying individuals as independent contractors can be serious and may result in large penalties or damages awards, including unpaid overtime compensation, tax and insurance obligations, liquidated damages, and civil penalties.
This Toolkit includes resources on independent contractor classification compliance and misclassification litigation under the Fair Labor Standards Act (FLSA). For resources addressing independent contractor issues under state law, see State Wage and Hour Claims Toolkit.