HR Management & Compliance

Misclassifying Employees as Independent Contractors Can Prove Costly

By Jodi R. Bohr, Gallagher & Kennedy, P.A.

Needing workers to assist with the business is an almost certain eventuality as a company grows. The first and probably most important question an employer asks itself is whether the worker should be classified as an employee or an independent contractor.

Arizona employment law

Whether a worker is an employee or an independent contractor isn’t determined by the label placed on him in a contract. Instead, the determination hinges on several factors that make up the economic realities of the relationship.

Joan Smith and Roberta Tate worked as resident assistants (RAs) at Pine Tower, a senior housing facility owned and operated by the city of Phoenix. Both RAs signed a “Tenant Resident Assistant Agreement” each year that stated they were independent contractors, not employees of the city.

Read more.

Leave a Reply

Your email address will not be published. Required fields are marked *