Independent Contractors: Classification DOs and DON’Ts

By: Linda Duffy

Hiring independent contractors can be mutually beneficial for employer and contractor as both seek independence from a traditional employer-employee relationship. However classifying contractors correctly isn’t always easy and the Department of Labor (DOL) and Internal Revenue Service (IRS) are cracking down on employee misclassification.

Even for the most well-meaning employers there can be confusion and liability. For example, the employee turned contractor who leaves the company for more work flexibility; the contractor who was filling in only to grow into a more regular position; or the contractor that must access company resources to complete his or her assignment; adds layers of confusion that can make a company vulnerable to regulations, penalties and tax issues.

To learn more about hiring employees or independent contractors attend the upcoming workshop presented by Linda Duffy titled Hiring for Success – six critical factors every small business owner should know.

About Linda Duffy

As the Founder and President of Ethos Human Capital Solutions, Linda is a trusted human resources advisor to businesses in the areas of recruiting, strategic HR consulting, training, and mentoring. Known as The People Problem Solvers™, she develops strategies for business owners to get the right people, systems, and culture in place to achieve their goals.

Looking to start or grow your business?

We at the Orange County Inland Empire SBDC, are here to help you with every aspect of your business to help it grow and become successful.
Give us a call at 1-800-616-7232 or schedule a quick, 15-minute intake appointment at ociesbdc.org/consultation to see how we can help you start, grow, and succeed.

Independent Contractors: Classification DOs and DON’Ts

Mike Daniel is the network director of the Orange County Inland Empire SBDC Network, which assists aspiring entrepreneurs and current business owners throughout Orange, San Bernardino and Riverside counties. Mike was formerly the director of the SBDC office at Long Beach City College. As business owner and entrepreneur himself, he started his career as the owner of a Rocky Mountain Chocolate Factory location in Manhattan Beach and went on to open a second location in Long Beach in 2001. In 2007, Mike sold the Manhattan Beach store for an above-market offer then invested in several additional locations as a minority shareholder. Mike further expanded his candy empire with venture located in Shoreline Village in Long Beach called Sugar Daddies Sweet Shoppe, based on fill-it yourself candy options.

Mike has a bachelor’s degree in Business Administration from California State University, Fullerton.