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Should a business use independent contractors?

The “gig economy” has opened up a world of possibility for many companies as well as workers who now classify themselves as independent contractors. It lets many workers enjoy much greater flexibility while providing services to the businesses that use them for a much lower overhead cost. However, using independent contractors is not the right choice for every business or every worker. Here are some of the differences between independent contractors and employees as well as how they relate to employment law.

Differences abound and are important to know

As stated above, independent contractors generally have more flexibility than employees. They can set their own hours, work for multiple companies and often work from home or another location outside of an office. Some advantages for the business include not having to cover any benefits for the employee and even shifting certain costs for job duties onto the employee.

Typically, the worker signs a contract with the business that outlines the exact scope of work as well as the compensation received. Independent contractors often have more authority over how job functions will happen, which can be both a benefit and drawback to a company, depending on the circumstances. However, businesses often find that these types of workers bring a great deal of specialized knowledge as well as a wealth of experience or education. They can be highly beneficial to a business that needs expertise in certain areas but may not want to employ that type of person full time, for various reasons.

Certain legal issues still apply to independent contractors

If a business chooses to make use of independent contractors, it is imperative that all matters relating to the work of those people are outlined in a contract. Even if many employment law matters do not apply to these workers, it is important that a business protect itself and offer workers peace of mind that they will be treated fairly. An attorney who understands different facets of business law here in Georgia can help implement a winning strategy for using this type of employment source.