From the course: Hiring Contract Employees
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Compensation and ICs
From the course: Hiring Contract Employees
Compensation and ICs
Lina was rushing to get a large project in on time, so she hired a freelancer she found on the other side of town to help her get her job done. They agreed on an hourly rate. He worked all day on the project, and sometimes into the evening. He provided a weekly timesheet and she paid him accordingly. All went well for three months until they had an argument about his hours, and she fired him. Well, lo and behold, he filed a wage claim for unpaid overtime and an unemployment claim, both of which he won. The agencies both ruled that he was an employee primarily because of how we was paid and managed. It made no difference that he was a remote worker because Lina managed and controlled his work product and paid him hourly. How a worker gets paid says a lot about their status. Just because you pay them the way they agreed to be paid does not make them an independent contractor. This is because you can't contract around the law. Remember, independent contractors are generally paid for the…