Ways to Hire & Onboard Remote Workers Recruiting remote workers has shifted to become a main focus for many businesses. Prior to the pandemic, many companies had little to no best practices in place for recruiting, hiring and onboarding remote workers and had to...
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There are plenty of reasons that some people choose to go out on their own and work as independent contractors: flexible hours, unlimited income potential, control over income taxes, and control over the trajectory of their careers. There are also many reasons companies like to hire independent contractors, two of the most common being scalability and cost.
Some companies question when they should begin to transition from hiring independent contractors to full-time employees, but a more serious question should be, are your independent contractors already employees who have been misclassified? According to the U.S. Department of Labor (DOL), most workers are employees. The DOL issued a guidance in July of 2015 stating that the “misclassification of employees as independent contractors is found in an increasing number of workplaces in the United States…”. The guidance goes on to state that when employees are improperly classified, those workers may not receive protections common in the workplace, such as minimum wage pay, overtime compensation, unemployment insurance, and workers’ compensation. The reality is that this is another one of the situations where “it’s good until it’s not.” Thus, the problem is that employees classified as independent contractors will request to be classified as such until they realize that they are in dispute with their employer, e.g., they are terminated and request benefits normally provided to employees.