Classifying someone who performs work for you as an independent contractor or as an employee can have significant ramifications. The impact may affect obligations and liabilities for employment issues as diverse as health insurance, benefits, employment taxes, wage and hour, workers compensation, unemployment, and the like. During our recent webinar about independent contractors, many of our listeners asked about what circumstances they should take into account when deciding whether a particular individual who works for them is an independent contractor or an employee.
Here is the link to the IRS website devoted to the issue. If you click on the “Behavioral”, “Financial” and “Type of Relationship” headings listed under “Common Law Rules”, you will find the IRS’s list of factors for employers to consider.
- IRS Resource Page: “Independent Contractor (Self-Employed) or Employee?”
- WEBINAR: Risky Business — The rising costs of misclassifying independent contractors
- McAfee & Taft’s Labor and Employment Group
- McAfee & Taft’s Employee Benefits Group
- McAfee & Taft’s Tax Group
About the author
Charlie Plumb is a labor and employment attorney with the McAfee & Taft law firm. He represents management in all phases of employment law and labor relations. Much of his practice is dedicated to counseling employers on compliance with a broad range of state and federal employment laws and regulations and educating management on best practices for avoiding disputes arising from the employer/employee relationship. He also has extensive litigation experience before federal and state courts, regulatory and administrative agencies, and in arbitration matters involving claims of discrimination, wrongful discharge, retaliatory discharge, breach of contract, and constitutional law violations.
As part of his labor practice, Charlie represents unionized employers in collective bargaining negotiations with labor unions, arbitrates grievances, and defends management against a variety of claims before the National Labor Relations Board and Department of Justice and in state and federal courts. He also represents employers who seek to maintain a non-unionized workforce by counseling management on union avoidance strategies and by providing training and advice to management and supervisors. His clients include numerous municipalities throughout Oklahoma and companies engaged in the manufacturing and distribution, construction, energy, public utility, technology and business services industries.
Charlie is a member of the American Bar Association’s Labor and Employment Law Section and the Oklahoma Bar Association’s Labor Council. He is also the designated representative of McAfee & Taft as the exclusive member firm representing Oklahoma in the Employers Counsel Network, a nationwide affiliation of leading law firms providing legal assistance and representation to employers.
Charlie is a frequent speaker and author on workplace issues. He is also co-editor of the Oklahoma Employment Law Letter, a monthly review of new court decisions, regulations and laws that affect state employers.
Charlie’s achievements have earned him inclusion in The Best Lawyers in America (labor and employment law), Oklahoma Super Lawyers (employment and labor, civil litigation defense), Benchmark Litigation and Chambers USA Guide to America’s Leading Lawyers for Business, where he has been lauded as “an impressive public speaker who utilizes his vast experience to effectively defend clients.” Researchers at Chambers & Partners also quoted market observers as admiring him for his “practicality of advice and specialized knowledge of complex legal issues,” with sources commenting that he “immediately commands respect, is always up to date and knows how to handle a problem.”