In recessionary times, managers are highly motivated to find creative ways to save money. Managers may consider increasing their reliance on independent contractors, to maximize the flexibility to control labor costs on minimal notice and with less disruption to employees. However, retaining independent contractors or reclassifying existing employees as such without a proper legal basis poses significant risks for the company should the workers' status as independent contractors later be challenged. This article discusses ten practical tips for employers and their in-house counsel to minimize the risks associated with the use of independent contractors, particularly in recessionary times.
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