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.