New Harassment Legislation: Governor Expands Law To Cover Independent Contractors; 3 Important Steps To Take

One advantage of using independent contractors has traditionally been that you could not be sued for many employment-related disputes. But because Governor Davis has just signed a new law expanding harassment protections to independent contractors, you will now have to be more cautious in how you deal with them. The measure takes effect January 1, 2000, and applies to all employers – regardless of how many employees you have.

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What The New Rules Say

The new rules permit independent contractors to sue you for harassment based on, among other things, sex, race, age, religion, national origin, marital status or disability. An independent contractor is defined, for purposes of the new law, as someone who provides services based on a contract and meets the following three criteria:

 

1. The person has the discretion and the right to control how the services are performed;

    

2. The person customarily engages in an independently established business; and

    

3. The person has control over the time and place the work is done, supplies necessary tools and instruments, and performs work that requires a particular skill not ordinarily used in the course of your business.

3 Important Steps To Take Now

You can reduce the potential for harassment problems involving contract workers in several ways:

 

1. Respond to contractor complaints quickly. Because of the new law, you now have to handle independent contractors’ harassment complaints the same way you treat those made by employees. Investigate promptly, and if the complaint is valid, take appropriate remedial steps.

    

2. Train your workforce and update your policies. Be sure your written harassment and anti-discrimination policies clearly cover nonemployees, including freelancers, temporary workers and contract workers, and get the word out to all employees.

    

3. Include an arbitration agreement. To limit potentially expensive lawsuits, put all agreements with independent contractors in writing and include a provision requiring disputes to be submitted to binding arbitration.