Determining your employee structure is an important part of developing your business.

Do you want to have employees or independent contractors? Whether you feel that you will need employees or independent contractors, you will need agreements detailing your relationship.

How to Know the Difference Between an Independent Contractor and an Employee

An independent contractor is someone who works for your business, but you do not have the right to control or direct the means or method of accomplishing the work results, only the result of the work itself. Generally, the employer will provide no training or tools for the job that the independent contractor is performing.

In Florida, the court will consider the following in determining if the person is an independent contractor or an employee:

  1. The extent of control which, by the agreement, the business may exercise over the details of the work;
  2. Whether or not the one employed is engaged in a distinct occupation or business;
  3. The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the employer or by a specialist without supervision;
  4. The skill required in the particular occupation;
  5. Whether the employer or the worker supplies the instrumentalities, tools, and the place of work for the person doing the work;
  6. The length of time for which the person is employed;
  7. The method of payment, whether by time or by the job;
  8. Whether or not the work is a part of the regular business of the employer;
  9. Whether or not the parties believe they are creating the relation of employer and employee; and
  10. Whether the principal is or is not in business.

If you have employees, they are entitled to certain benefits. They will be able to make a claim for workers’ compensation benefits as well as seek unemployment benefits if terminated.

Need Help for Your Business?

Do you need assistance in determining whether you need employees or independent contractors? We are here to help and guide you through this decision as well as draft agreements for both independent contractors and employees. Please call us with your legal needs and related questions at 850-386-5777.

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