Employee or Independent Contractor?

The differentiation between employees and independent contractors is an issue which comes up regularly for Architects and Engineers, especially with regard to Workers’ Compensation insurance, where the two categories are rated differently, therefore impacting a company’s premium.

So what is the difference between an Employee and an Independent Contractor?

Generally, a person is considered an employee if the employer retains the right to control the manner and means of the work they perform (i.e., provides the work space and tools, controls working hours). An employer only controls an independent contractor with regard to the result of his work and not with regard to the means by which the result is accomplished. It is important to remember, however, that this definition is often left vague in state insurance statutes, and open to the interpretation of the courts. Contact your insurance broker if you need help making this determination about one of your workers. Continue reading “Employee or Independent Contractor?”