Senate bill (SB25) introduced February 2, 2015 proposes a uniform standard for determining IC/employee status under the wage and hour, unemployment compensation and workers’ compensation statutes. Required are seven factors: (a) the individual is free from control and direction in connection with the performance of the service; (b) the individual customarily is engaged in an independently established trade, occupation, profession, or business; the individual is a separate and distinct business entity from the entity for which the service is being performed or, if the individual is providing construction services and is a sole proprietorship or a partner in a partnership, the individual is a legitimate sole proprietorship or a partner in a legitimate partnership; (d) the individual incurs the main expenses and has continuing or recurring business liabilities related to the service performed; (e) the individual is liable for breach of contract for failure to complete the service; (f) an agreement, written or oral, express or implied, exists describing the service to be performed, the payment the individual will receive for performance of the service, and the time frame for completion of the service; and (g) the service performed by the individual is outside of the usual course of business of the employer.
Chris Sutton, Partner – Clover Global Solutions, LP
For generations, the American workforce was comprised primarily of full-time employees who received all of the benefits – overtime pay, health insurance, paid vacations, etc.,– that their statuses conferred. Yet in recent years, a rising tide of independent contractors has saturated businesses from coast to coast. The financial incentive to employers for hiring contractors is easy to understand: Independent contractors aren’t covered by federal or state wage and hour laws, for instance, and are ineligible for employee benefits such as health insurance and participation in company retirement plans. In addition, employers aren’t required to pay Social Security, Medicare and unemployment taxes for independent contractors. [Read more…]
The way you manage your total workforce (including temporary employees and independent contractors) directly influences your ability to recruit new talent and respond to market opportunities.
Independent contractors (IC) are non-employee workers hired to perform a set task or a series of tasks. The independent contractor is considered to be self-employed, responsible for having proper insurance, paying taxes and paying workers or themselves. Based on their IRS classification, independent contractors are also known as 1099 workers.
In the oil and gas industry, independent contractors are typically engaged as technical professionals or subject matter experts with the knowledge and skills necessary to complete certain aspects of complex projects. Although the skills needed for these tasks are highly specialized, they translate easily from project to project, allowing an independent contractor to come into a project to perform a specific function, and then leave to perform the same function on another project. [Read more…]