I recently wrote about how the NLRB has made it easier to establish employee status and correspondingly more difficult to establish independent contractor status. In a recent publication, two of my partners outline some pros and cons of using independent contractors. While they focus specifically on the oil and gas industry, their observations are readily applicable to many industries. It is important that these decision are made with full consideration of potential problems and the ever-looming and potentially significant risks of misclassification. In addition to the many problems my partners talk about, like fines and citations by various government agencies and litigation from private plaintiffs, it is also important to remember that employees can form or join unions, but independent contractors can’t.
