It has been estimated that by 2020, about 40 percent of American workers will independent contractors
. That could have important considerations for businesses when deciding which employees need to be covered by workers' comp.
"What the employer was trying to do, clearly, was call him an independent contractor
in the contract, and that's not determinative of someone being an independent contractor
" for tort liability purposes, Denton said.
As you navigate the gig economy, remember that the best evidence of an independent contractor
relationship is the contract itself.
He wrote in his order that the presented evidence "supports a finding that the American Family agents defined in the class description should have been classified as employees and not independent contractors
who perform work for your business operate under their own business names.
[(Name) is an agent if (defendant) authorized [him] [her] to act on (defendant's) behalf.] [(Name) is an apparent agent if, by words or conduct, (defendant) caused or allowed (claimant) to believe that (name) was an agent of and had authority to act for (defendant).] A person is responsible for the negligence of [his] [her] independent contractor
if, at the time and place of the incident, the independent contractor
was an [agent] [or] [apparent agent] of the employer and was acting within the scope of his or her [apparent] authority.*
Motor carriers, like any other industry, may structure their business model to use either independent contractors
3509(a)(2), if an employer misclassifies an employee, the employer will face a back Social Security tax in the amount of 20% of the employee's FICA tax liability if he or she had been treated as an employee, assuming that the employer followed all the correct reporting requirements for an independent contractor
. If the employer did not follow the correct procedures, the amount due doubles to 40% of the employee's share of FICA tax liability if he or she had been treated as an employee (Sec.
That payment was needed to settle claims brought by the workers who claim that they were misclassified as independent contractors
and should have been considered FedEx employees.
Misclassification occurs when businesses wrongly classify workers as independent contractors
. Very rarely is the independent contractor
misclassified as an employee but in theory, it could happen.
Late last year, L&I released an updated independent contractor
guide to help everyone better understand Washington's 6-point test (7 points for construction contractors).
The same person could be considered an independent contractor
or an employee simply based on the business at issue."