Independent Contractors VS Employees

To understand the differences between Independent Contractors and actual Employees, you should look at the different concepts that distinquish the differences and understand them.
Here are 4 concepts to look at:
1) Is the worker paid by the hour, week, or month? If the answer is YES, then the person is more likely an emplyee. Independent contractors usually bid on a job and are paid just for that particular job
2) Does the business provide training? If the answer is YES, then the person is an employee. Independent contractors do not recieve training from the company, they get it elsewhere.
3)Can the worker be terminated at will? If the answer is YES, then the person is an employee. Independent contractors sign a contract. They can only be terminated if they fail to hold to the provisions of the contract.
4)Can the worker terminate at will? If the answer is YES, then the person is an employee. An independent contractor can only terminate his/her position if the company does not hold to the provision of the contract.
An organization needs to treat employees and independent contractors differently and to understand how they are different. This is important because if you treat an independent contractor like an actual employee, they may expect to have the benefits of an actual employee and the department of labor may agree that they are an employee especially if there is a labor complaint, harassment suit or a discrimination suit. The company may be held responsible if the independent contractor is treated like an emplyee

By Susan Colbert