Today more than ever Colorado businesses are evaluating the need for full time vs. part time employees. Many firms are also considering using a third party firm for certain functions. Misclassification of contractors and employees can be a problem when it comes to Colorado workers’ compensation and employment laws. The Department of Labor (DOL) is cracking down on employers who misclassify independent contractors who really should be employees. If you are an employer who hires contractors, the DOL has issued new guidelines to help you.
The DOL offers these six factors for employers to use as a test to differentiate between an employee and a sub-contractor.
The six factors or questions in the “economic realities” test include:
Source: DOL-Administrator’s Interpretation No. 2015-1
For over 10 years, we have focused on reducing insurance costs and improving coverage for Colorado businesses which make up over 80% of our current clientele. Since he knows all the details of real estate risks, you are in good hands with Steve! Coverage for contractors include Commercial Auto, General Liability, Inland Marine, Property, Workers Compensation and more.