An employer`s liability for violations of wage and hourly laws, discrimination, unlawful dismissal and similar rules can be easily reduced by not ignoring employees or minimizing their ranks. And as some tennis and racket companies have discovered, it`s usually possible that some workers work as independent contractors, bypassing a number of taxes and other debts – perhaps. There is no easy solution to this problem if you do not treat everyone as an employee. However, it is clear that many tennis companies do not regularly review their labour relations before they are faced with an IRS, the Ministry of Labour or another audit. And workers rarely look beyond the tax breaks expected when they become independent contractors. It is also a clever tactic to look like an independent company. Not accepting employment benefits; instead, require enough to make health insurance, paid leave or retirement benefits affordable. Independent contractors also find it a good idea to keep a separate bank account. In the case of the tax, the IRS issued guidelines a few years ago for paid workers as self-employed contractors and qualified as employees.
What should the worker do? Lee and Chevez took the ball and claimed they were doing exactly the same job as an hour-by-hour employee, unless they got the same benefits. In California, independent contractors are generally „less protected” than hourly employees, mainly because independent contractors have never been recognized as employees. The employer is exempt from liability when tax returns, including Form 1099, show that all workers of the same type were treated consistently as independent contractors and that there was an appropriate basis for this classification. As a general rule, employers must meet three requirements: an appropriate basis for the treatment of workers as independent contractors, a requirement for consistency of content and a requirement for consistency of declarations. The most important thing is that an independent contractor should provide services to more than one person or business. Hanging a bar, promoting your services or joining a professional organization are strong signs of being an independent contractor.