While there are often many benefits to companies engaging contractors instead of hiring employees, businesses must also be careful not to characterize an employment relationship as something it is not. The following are common indicators of a “true” contractor relationship, and in ideal circumstances, most or all of these items will be present. Not all of these items are necessarily required in order to establish a contractor relationship, nor does this list represent an exhaustive summary of all possible factors suggestive of a contractor arrangement.
This list is designed to be used by organizations to assess the health of their contractor relationships. If an organization is checking more often than not in the ‘no’ column, it may be advisable to speak with an employment lawyer and consider ways to strengthen their contractor’s status.