The law treats employees and independent contractors differently. Independent contractors are usually exempt from labor and employment legislation, such as minimum wage and overtime pay and retirement contributions, while employees are usually covered by it. The failure to properly classify independent contractors and document their status as such at the beginning of a relationship can lead to liability for workers’ compensation and unemployment taxes, benefits lawsuits, and wage and hour claims at a later time—often because a relationship has soured or an individual feels an employer has taken advantage of them.
Ordinarily, the determination of whether a worker is an independent contractor or an employee is made after examining the relationship between the worker and the employer. All evidence of control and independence is considered in determining an individual’s status, including behavioral control, financial control, and the parties’ categorization of the relationship itself. It seems like an easy determination to make.
However, a recent Ohio Supreme Court decision is a timely reminder that public employers should be deliberate in categorizing service providers as independent contractors rather than employees. In State, ex rel., Ugicom Enterprises, Inc. v. Morrison, 2022-Ohio-1689 (May 24, 2022), the Court reviewed the question of whether certain individuals were actually employees under Ohio’s workers’ compensation laws and found that they were. The Court’s decision...
False sexual or rape allegations can have devastating consequences for the accused, including reputational damage, loss of employment and emotional trauma. In Nigeria, current legislation focuses ...