Independent Contractors in Construction Series - Part 2

The Benefits of Independent Contractors

Independent contractors are not employees, they are a separate business this means businesses contracting with them can avoid a lot of obligations of using employees for work. Included below is a list of the federal employment laws that cover employees, but not independent contractors.

  • Fair Labor Standards Act (FLSA).

  • Title VII of the Civil Rights Act of 1964 (Title VII). However, independent contractors do have some legal protections under 42 U.S.C. § 1981, prohibiting racial discrimination in contracts.

  • Equal Pay Act (EPA).

  • Age Discrimination in Employment Act (ADEA).

  • Americans with Disabilities Act (ADA).

  • Genetic Information Nondiscrimination Act (GINA).

  • Uniformed Services Employment and Reemployment Rights Act (USERRA).

  • Occupational Safety and Health Act (OSH Act).

  • Worker Adjustment and Retraining Notification Act (WARN Act).

  • Family and Medical Leave Act (FMLA).

  • Employee Retirement Income Security Act (ERISA).

  • Affordable Care Act

  • National Labor Relations Act (NLRA)

Because independent contractors are not covered by these laws, they are not guaranteed:

  • Overtime

  • Reimbursement for work-related expenses

  • Accommodations under the ADA

  • Paid leave under the FMLA

In summary, independent contractors are not guaranteed any protections or benefits that are not within the contract. This is one reason why it is important to have any contract your business offers to an independent contractor reviewed by an attorney at Galvanize Law Group, LLC. Only then, can you be sure your business is protected both during the contract and in the event a dispute arises. Contact us to learn more.

Galvanize Law Group provides resources and information for educational purpose only. These articles are general in nature and Galvanize Law Group does not guarantee that the information is accurate at the time of review, given the changing nature of the law and its application to different facts and circumstances. These resources are not intended to and do not constitute legal advice. No attorney client relationship is formed and no representation is solicited by the publication of these resources.
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Independent Contractors in Construction Series - Part 1

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Independent Contractors in Construction Series - Part 3