It is important that employers correctly determine whether workers who provide services to their company are self-employed contractors or workers. To be considered a self-employed contractor, a worker must meet certain criteria. A worker should not be considered a self-employed contractor simply because he wishes to be self-employed or because the employer wants the worker to be a self-employed contractor. It is not enough for the employer and the worker to consent. While it can be tempting to save money by classifying workers as self-employed contractors, misclassification can have serious financial and legal consequences. Simply put, an independent contractor is a person who provides goods or services to another company on the terms set out in a contract. Independent contractors retain control over their schedules and the number of hours worked, orders accepted, the performance of work and how the contract is finalised. This contrasts with regular workers, who generally work according to the schedule requested by the employer and whose benefit is directly controlled by the employer. However, these definitions do not sufficiently determine the status of worker. Identifying the difference between staff and independent contractors requires a detailed analysis. Under Title 72, Idaho Code, the term „worker“ is defined as a person who has obtained employment with an employer or works under a service or training contract with an employer, unlike an „independent contractor“ defined as a person providing a service for a certain compensation for a given result. under the right: to control or effectively control his power of order only on the result of his work, and not in a way that allows such a result to be achieved.
Independent Contractor Contract – Describes the operating conditions implemented by the customer who wishes to engage a contractor. At the federal level, the Fair Labor Standards Act (FLSA) has been interpreted by the courts to define workers based on whether or not they are economically independent of their employer. The worker`s economic dependence is determined by balancing several factors, including (1) the extent to which his or her work is an integral part of the employer`s business; (2) the possibilities of profit or loss of the worker according to the worker`s own capacities, (3) the extent of the worker`s investment in relation to the employer, (4) whether the work requires particular skills and initiatives, (5) the permanence of the relationship and (6) the degree of control exercised by the employer. Idaho`s employment contract creates a new job between an employer and a new employee….