This article posted on our partner site Mondaq.com discusses the benefits and, more importantly, the risks associated with designating workers as independent contractors in a contract (e.g., risk of litigation for misclassification lawsuits; costly audits by pension, tax, and employment agencies). The author provides three tips for companies who wish to minimize these risks: honestly assess the nature of working relationships, have the parties’ intent as to the independent contractor’s status clarified in a contract, and seek counsel to review classifications if necessary.

This comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!

 

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This article is provided for informational purposes only and does not create a lawyer-client relationship with the reader. It is not legal advice and should not be regarded as such. Any reliance on the information is solely at the reader’s own risk. Clausehound.com is a legal tool geared towards entrepreneurs, early-stage businesses and small businesses alike to help draft legal documents to make businesses more productive. Clausehound offers a $10 per month DIY Legal Library which hosts tens of thousands of legal clauses, contracts, articles, lawyer commentaries and instructional videos. Find Clausehound.com where you see this logo.

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