Freelancers and Independent Contractors

Independent contractors and freelancers have different legal rights and duties than the average employee. Misclassifying employees may lead to fines and consequences for the employer. Employers must understand how to classify their workers and what the legal requirements are for freelancers.

7 Differences You Need to Know About Independent Contractors and Employees

There are significant differences between independent contractors and employees, and these differences are important for both the person hired and the employer in various ways. Knowing the differences is equally vital to avoiding violations of the law and protecting the employee or independent contractor from legal issues.
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As an Independent Contractor, Can I Work for More than One Client?

Independent contractors are a different classification of workers than employees. The distinctions between these two groups of workers are significant and have specific implications when working for multiple clients. Understanding the legal rights and duties of an independent contractor can help determine what limitations are appropriate.
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Employee Rights in the Gig Economy

Taking part in the gig economy as a freelancer or independent contractor often removes the possibility of employee rights because this person is not an employee of a company but is usually a temporary worker. However, other rights that these freelancers enjoy still exist and can make the situation more bearable.
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Employer Claims I Am an Independent Contractor but I Never Signed Paperwork

Employers often hire independent contractors to perform work that is similar to the work employees perform. However, there are several advantages to employers hiring independent contractors, including not having to collect and pay payroll taxes for independent contractors. Employers withhold income tax, Social Security and Medicare tax from employee wages.
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Employer Responsibility for the Acts of an Independent Contractor

Generally, the employer is not responsible for the actions and illegal activities of the independent contractor unless certain conditions exist such as a direct connection to the activity or delegating tasks that should not go to the IC. Liability is a great concern for the company, and separating these concerns is vital with the business and the independent contractor.
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Employment Misclassification Problems with Independent Contractors

Misclassification of employees and independent contractors happens all the time with a company or employer that does not understand what classification to apply and why it is important to keep the correct classification for the individual. Fines and other consequences are possible when the company is in violation along with problems with freelancers or independent contractors.
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Former Independent Contractors Breach of Non-Solicitation Clause

When a business owner or manager has independent contractors, he or she often has them sign certain contracts that bind them to terms and conditions. If these individuals break the contract or breach the terms, they could be taken to court and the clauses may be enforced when necessary.
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Gig Economy Workers and Employment Benefits

Workers in the gig economy generally do not have employee benefits, but some of these freelancers can acquire certain benefits either through a contract or over time with the company or clients working with these projects. Some gig workers can become employees of one company and still remain freelancers or independent contractors of other businesses.
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Gig Economy Worker Contract Issues

Contract issues can occur in all manner of ways to include problems with payment, an alteration that complicates matters and breaches between the two parties. The more important problem is the contract breach because of a violated term that the client fails to perform, does not pay or intentionally breaches for some unknown and unforeseeable reason.
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Independent Contractors - Should They Form an LLC or S-Corp?

Independent contractors have various options open to them based on employment, contractual jobs and what they accomplish around the year that can support the creation of a limited liability company or an S-Corporation. Depending on the factors of each and what the individual wants to do, he or she will need to determine if either is the best route in the future.
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Legal Requirements for Freelancers

Freelancing legal requirements and aspects are often confusing to those that have only just started or that have not fully researched these matters. It is important for a freelancer to know what is legally required for the job, for tax purposes, the government and for his or her own personal protection.
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Vicarious Liability in Employment - Does It Affect an Independent Contractor?

Vicarious liability works through employees that suffer along with the company because of actions and decisions taken that are either illegal or that violate certain policies which later incur penalties such as fines and jail time. General circumstances do not extend to the independent contractor, but there are some exceptions where the company can become liable for this person’s actions.
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Wages to Independent Contractors - Are They Subject to Garnishment?

Persons that work for themselves are considered independent contractors even if they are employed within the building of a company. These individuals are not considered employees and may not be subject to various regulations or stipulations, and this means that numerous aspects do not apply to these persons as they would a standard employee.
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