How to Reduce Liabilities When Placing Independent Contractors

Nowadays, there are more independent contractors in the workforce than before. Staffing agencies may need to brush up on how to handle independent contractors in terms of placement.

Contract Language Should Be Specific

When you work with an independent contractor, you have to make it clear who owns the intellectual property. The contract should explicitly spell out who owns the property when the work is finished. Otherwise, this can lead to confusion and legal issues. As the staffing agency, you need to know how to reduce independent contractor liability.

Agreements Should Spell Out the Relationship Between All Parties

The agreement has to include an outline of the relationship between the contractor, your company and the host company. If you do not explicitly state the contractor’s status as an independent agent, then the host company could face penalties for misclassification of employees.

All companies are required to provide healthcare for employees when their workforce is over 50 full-time employees. Without proper classifications, the host company could be sued by the contractor for misclassifying him or her and not providing insurance.

Independent contractors fill important gaps in the workforce. They work in nearly every industry, from artistic consultation to construction and engineering. As an independent contractor staffing agency, you need to be clear in the contract language to avoid any issues.