Determinants of independent contractor status: Outcomes of US court cases
Abbreviated Journal Title
J. Small Bus. Manag.
Failure on the part of any small business to correctly classify individuals as employees rather than as independent contractors can prove costly in terms of both time and money for both the business and the individual incorrectly classified. In an attempt to try to make sense of the numerous criteria promulgated for classifying individuals providing services to small businesses, this study examined the outcomes in 79 United States court cases dealing with the issue of classification. Results indicated that the greater the extent to which the individual has to comply with instructions as to when, where, and how to perform the work, the more likely the individual is to be classified as an employee. Additionally, if the individual has to personally provide the services, the individual is more likely to be classified as an employee. Regardless of whether domestic or foreign, all small businesses with a physical presence in the United States must ensure the proper classification of any individual providing services to that company. A flow chart summarizing the results of this study is provided as a minimal starting point for small businesses to use to ensure proper classification.
Journal of Small Business Management
"Determinants of independent contractor status: Outcomes of US court cases" (1999). Faculty Bibliography 1990s. 2918.