| There are many pros and cons that must be
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| | unlikely that an independent contractor
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| considered by those thinking of hiring
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| | would be covered on your policy, yet
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| independent contractors, and if those are
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| | workers' compensation coverage would take
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| not factored into the hiring decision,
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| | care of any employee who is injured on
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| there may well be legal consequences. Of
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| | the job. Of course, in return for that
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| course, it is always wise to go over your
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| | coverage, the employee gives up his/her
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| plans with your attorney, so this article
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| | right to sue you for any injuries
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| is not to be construed as legal advice
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| | incurred. Such is not the case with
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| but rather some business alerts that need
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| | independent contractors who can sue for
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| to be considered before making a
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| | damages if they are injured on the job
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| decision.Of course, the first thing to do
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| | because of your carelessness. (Years ago
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| is to consider the job that is to be
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| | my company was sued when the independent
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| done, the duration of the assignment, the
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| | contractor claimed that due to our
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| pros and cons of choosing a permanent
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| | carelessness, furniture had been placed
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| employee and the pros and cons of hiring
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| | in her way causing her to fall and injure
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| an independent contractor. Then, you
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| | her back. Since no one was present when
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| need to make certain that your
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| | she fell, we were found guilty and made
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| classification decision will hold up if
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| | to pay ongoing medical expenses until we
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| it is challenged by either your state's
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| | learned that the employee had been
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| or the federal auditors.Why Would You
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| | practicing this ploy for a number of
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| Want to Hire an Independent
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| | years. We were released from liability.
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| Contractor?The reason that drives most
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| | However, we were out thousands of dollars
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| companies to decide to hire independent
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| | before it was over, there was no
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| contractors is a simple one - money.
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| | insurance coverage, and the cost of suing
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| There is no doubt that there is a
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| | her for the monies was greater than the
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| definite financial advantage, and in most
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| | loss. We then had to get the contract
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| cases, the company does save money for a
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| | voided through legal channels.)Copyrights
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| wide variety of reasons. Let's consider
| |
| | - Yours or Theirs?Work done by an
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| some of the expenses that are almost
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| | employee on company time (and sometimes
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| always incurred when a regular employee
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| | during off hours) belongs to the
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| holds a position.路 There is the 7.6% of
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| | employer. Such is not the case when such
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| the employee's total pay that will be
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| | work is created by an independent
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| your share of the Social Security
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| | contractor unless there is an agreement
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| and Medicare taxes. Obviously, this
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| | between you and the independent
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| cost is one that cannot be avoided.
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| | contractor providing for the work done to
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| 路 There is also state unemployment
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| | be copyrighted under your or the
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| compensation insurance to cover, and that
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| | company's name. A number of companies
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| amount will vary from state to state.
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| | build that language into their
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| But, it must be considered and cannot be
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| | agreements. (For example, a major
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| avoided.
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| | training company whose name has changed
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| 路 There is also worker's compensation
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| | several times in the past few years, has
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| insurance to be paid.
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| | independent writers develop their role
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| 路 If you provide health benefits, then
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| | plays and sometimes the actual workbooks
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| that figure must be identified and
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| | that will be provided to their clients,
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| factored into your analysis.
| |
| | and their contract language goes beyond
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| 路 Retirement is another cost that is
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| | what is normally used. They have
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| often ignored when the hiring analysis is
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| | contracts that note that ANY work
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| being done, but if retirement is offered
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| | produced by the writers during the
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| in one form or another, it must also be
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| | contract period (which is on going and
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| considered and added into the
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| | has no definite cut off date) will belong
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| equation.Actually, those who have
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| | to the company. Since the writers are
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| researched compensation, tell us that in
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| | not on staff nor are they guaranteed any
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| most companies the compensation package
| |
| | given amount of work, this would mean
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| often equals 33 1/3%+ of the annual
| |
| | that work done for any other clients or
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| salary of a given employee. This figure
| |
| | for themselves would be the property of
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| must also be added to your payroll
| |
| | the training company. For some unknown
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| cost.Flexibility Is A Major FactorThere
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| | reason, there are writers who are willing
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| are a number of reasons why employers
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| | to sign and accept the fact that the
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| want the flexibility that staffing with
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| | company notes that "we never enforce this
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| independent contractors can give
| |
| | agreement, so you don't have to worry.").
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| them::路 Seasonal work patterns.
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| | It would be very unwise to emulate that
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| 路 Fluctuating workloads for various
| |
| | company's practice since it would be a
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| reasons.
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| | very questionable one if there were a
|
| 路 Specific tasks that need to be
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| | lawsuit.Scrutiny Is Intensified When
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| accomplished but not on an ongoing basis.
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| | Independent Contractors Are UsedThe
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| 路 Freedom from legal problems if it is
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| | government has a vested financial
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| necessary to let the worker go.
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| | interest in your having as many employees
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| 路 Workforce expansion and contraction
| |
| | on your staff as possible. After all,
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| as needed or wanted.
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| | they are more likely to know who made
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| 路 Specialized skills provide greater
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| | what income in a given time period and
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| flexibility and also immediate
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| | are thus better able to get their taxes
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| productivity.
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| | collected from employees than they are
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| 路 Reduction in training time and
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| | from independent contractors. It is less
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| related costs.Fewer "Rights"
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| | likely that employees will be working
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| IssuesIndependent Contractors do have
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| | "under the table" It is for that reason
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| protection under some laws, but the
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| | that there are relatively frequent audits
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| rights guaranteed to the employee are far
| |
| | conducted to make certain that your
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| greater in number and can result in
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| | reported independent contractors truly
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| numerous legal claims that are both
| |
| | are independent and have assignments and
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| monetarily costly and time drains.
| |
| | supervision patterns that fall within the
|
| Because Independent Contractors are not
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| | required guidelines.Much to the surprise
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| employees but self-employed business
| |
| | of many business owners, it isn't only
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| people, there are fewer laws to consider.
| |
| | state and federal taxing agencies that
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| For example, the independent contractors
| |
| | conduct audits. Let's look at those who
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| are not covered (at least only to a very
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| | might have an interest in how you are
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| limited extent if at all) by the
| |
| | dealing with the issue:路 The IRS (no
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| following laws:路 Minimum wage laws (in
| |
| | surprise)
|
| some states certain jobs do have a
| |
| | 路 The state's taxing agency (again no
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| minimum pay rate).
| |
| | surprise)
|
| 路 Race, national origin, color,
| |
| | 路 The Department of Labor which has an
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| religion, gender, etc. laws.
| |
| | interest in wage levels and hours worked
|
| 路 The right to form or promote a union.
| |
| | 路 OSHA which looks at safety law
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| 路 Family leave time.In states where
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| | compliance
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| permitted, employees can sue for wrongful
| |
| | 路 The National Labor Relations Board
|
| termination, but such laws only protect
| |
| | 路 The state's unemployment compensation
|
| independent contractors if a contract was
| |
| | agency
|
| breached and that breach can be
| |
| | 路 The state's workers' compensation
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| proven.Why Wouldn't You Want to Hire an
| |
| | agencyThe various agencies have
|
| Independent ContractorIt sounds as if it
| |
| | repeatedly voiced concerns about those
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| is the best of all possible words to use
| |
| | individuals who "work under the table,"
|
| independent contractors instead of
| |
| | and their concerns cover a variety of
|
| employees, but you need to look at the
| |
| | areas, but money is often the driving
|
| other side of the coin to be sure that is
| |
| | force.Misclassifying your employees can
|
| true for you and your company. Let's
| |
| | be costly since it can result in stiff
|
| consider some of elements that must be
| |
| | penalties being levied against your
|
| factored into your final
| |
| | company-penalties that may well offset
|
| decision.Independence Is a Key Reason
| |
| | the monies saved in the first
|
| People Become Independent
| |
| | place.Summary:While the actual monies
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| ContractorsIndependent contractors see
| |
| | paid to the independent contractor may be
|
| themselves as independent business
| |
| | higher than those paid to an employee,
|
| owners, and they are. You cannot oversee
| |
| | this fact needs to be weighted against
|
| their work nor dictate the approaches
| |
| | other factors such as:路 Performance time
|
| they use in the same way you would for an
| |
| | needed
|
| employee. Let's look at some of those
| |
| | 路 Level of expertise sought
|
| differences:路 They, not you, decide the
| |
| | 路 Need, if any, for training time for
|
| best way to operate and perform. If you
| |
| | an existing employee
|
| do interfere in the process, you may well
| |
| | 路 Space and tools needs
|
| have the IRS deciding that you have an
| |
| | 路 Immediacy needs
|
| employer-employee relationship with the
| |
| | 路 Fringe benefits
|
| person. Of course, that means that all
| |
| | 路 Demographics of the existing worker
|
| of the costs outlined above are now going
| |
| | pool
|
| to be incurred for this individual or
| |
| | 路 Estimated project time spanRemember,
|
| these individuals. (One of the major
| |
| | there is almost no job that cannot be
|
| companies in the Silicon Valley learned
| |
| | performed by an independent contractor,
|
| this to their horror when they identified
| |
| | so it is up to you to determine the
|
| their trainers as independent contractors
| |
| | advantages and disadvantages of entering
|
| but required that corporate training
| |
| | into a contractual agreement with such an
|
| materials be used, that the trainers
| |
| | individual.Elizabeth Kearney, Ph.D. Sits
|
| maintain a given work schedule, and
| |
| | on four boards, writes a column for a
|
| provided them with offices, phones, etc.
| |
| | monthly newspaper, is founder of Kearney
|
| The IRS stepped in and disallowed several
| |
| | & Associates: The Experts' Alliance, and
|
| years' worth of deductions).路 When you
| |
| | identifies issues for which solutions are
|
| enter into a contract with an independent
| |
| | sought and then she and the members of
|
| contractor, that contract is binding on
| |
| | her Alliance design and deliver related
|
| both the contractor and your company
| |
| | programs and/or consulting services. Liz
|
| unless one or the other party violates
| |
| | specializes in strategic planning,
|
| its terms. Although you may well have a
| |
| | effective leadership, and this
|
| right to fire an employee, such is not
| |
| | award-winning author and professor was a
|
| the case with an independent contractor
| |
| | John Hopkins Fellow. Three of her books
|
| unless he/she violates the
| |
| | were Fortune Book-of-the-Month Club
|
| contract.路 Although you can reassess
| |
| | selections, and her latest book, Women
|
| assignments, and the employee's
| |
| | Who Paved the Way, is already in its
|
| assignments can shift and change, you do
| |
| | second printing. Liz was selected in
|
| not have that option when dealing with an
| |
| | 2003 & 2004 as Businesswoman of the Year
|
| independent contractor whose services are
| |
| | by the National Business Advisory Council
|
| outlined and limited by the terms of the
| |
| | and by ABWA. She was one of fourteen
|
| written agreement. If you decide you
| |
| | business owners who were honored in
|
| want other duties performed and fire the
| |
| | Washington, D.C. in March of 2005, and in
|
| independent contractor when those duties
| |
| | the same year, she was presented with the
|
| are not performed, you may well be liable
| |
| | Ronald Reagan medal for her work with
|
| for damages.Medical CoverageUnless you
| |
| | small businesses and their related
|
| carry a very unusual policy, it is highly
| |
| | issues.
|
