Schedule

• One of the most fundamental considerations associated with contract for work laws is that the person who is engaged for such services must be able to create her own schedule. Although the person or business seeking contract for work labor can suggest a schedule, in the final analysis, the person performing the contract work must be the final decision maker in regard to scheduling. If the worker lacks that ability, it is very likely that the relationship will be deemed to be that of employer and employee.
  
  

Ability to Accept Other Work

• Pursuant to the provisions of contract work laws, a contract worker is able to accept jobs and projects from other individuals and businesses. In other words, if a particular business attempts to impose an contract calling for the worker to provide services exclusively to that enterprise, an employer and employee relationship will likely be considered to exist from a legal standpoint.
  
  

Tax and Related Benefits to Business

• A business that elects to engage a contract worker or independent contractor will enjoy an array of benefits that include the ability to forgo paying payroll taxes, as well as paying unemployment taxes and premiums on workers' compensation insurance. In short, utilizing the services of a contract worker is cheaper for a business and requires less paperwork.
  
  

Legal Shell Game

• Many business attempt to undertake something of a shell game when it comes to contract work laws. They establish on paper a contract worker or independent contractor relationship with an individual. However, in practice that exert the same control over that individual that exists in an employer and employee relationship. Oftentimes a worker will not challenge the situation because he wants to obtain future work and positive references.
  
  

Penalties

• The penalties that a business potentially faces when failing to properly classify a worker as an employee are significant. All taxes that should have been collected will be due and owing immediately upon the discovery of the ruse. Moreover, the business will be charged with very significant penalties as well as accrued interest on the unpaid taxes. A business can face additional penalties for failing to maintain workers compensation insurance.