Should You Hire Employees or Independent Contractors?
Do you own a startup? If the business takes off, you’ll eventually need to expand your workforce. With this comes a huge decision: should you hire employees or independent contractors? Depending on your industry, you may have to hire one or the other. With some industries, you have more leeway than with others.
Hiring Employees and Independent Contractors; the Difference
First, you should know what constitutes an employee and independent contractor.
Employee—Employees work under a formal contract, thereby giving the employer the right to dictate how the employee performs the work. You have the right to dictate how you train and supervise the employee as well as control work hours.
Independent Contractor—With independent contractors, you may provide a work outline and set a deadline. In other words, you may dictate what you want the end result of the work to be, but not dictate how it’s completed.
The Pros and Cons
Our Business law lawyers can help you determine when it’s best to hire an employee or independent contractor. Generally, we recommend a choice based on these factors:
Hire employees if:
- You prefer a long-term and cohesive team. You can also guarantee them job security, thus reducing turnovers.
- You prefer paying employees a steady but lower wage
- You prefer an in-house workforce that you can monitor and keep tabs on
Hire independent contractors if:
- You only require a workforce on a sporadic basis
- You prefer paying workers a higher wage rather than benefits, such as health insurance and paid vacations.
- You dread costly employee turnovers. You can easily release contractors if you don’t sense a good fit.
We’ll Help You make a Decision
Contact Curtis & Casteel Law Group if you’re starting a business. Our attorneys have many years of guiding startups in the Lynnwood area. Our firm will assess, based on your industry, whether hiring employees or independent contractors is the best course of action.
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