Whether workers should be classified as employees or independent contractors is an important human resources issue and litigation in this area is likely to increase in the future. Recent cases indicate, however, that the courts do not have a uniform approach to the independent contractor analysis. While the National Labor Relations Board consistently applies a 10-factor test of independent contractor status, federal courts disagree on the test to be used or the factors to be emphasized.

As is true with most employment litigation, these cases may take years to resolve and the cost to employers can easily be six figures. Management 2000, a Professional Employer Organization in Indiana, constantly monitors court cases involving human resources issues.  With this information, the HR professionals in Management 2000’s HR Department can provide guidance and support regarding employee classification as well as other human resource policies and practices. For more information about the many human resource management services provided by Management 2000, call (317-549-2000) or visit www.management2000.com.