Other factors, such as the fact that the Wells Fargo security guards would sometimes help out the hotel s desk clerks and deliver linen to the guests room, confuses the scope of the original job and makes it difficult to define if the worker is an employee of the hotel or not. As confusing as this gets, the fine line between what differentiates an employee from an IC can be clarified with documented contracts defining what the worker is, what is his or her job description, and the boundaries of the scope of the work. By now it is obvious that determining a worker s status is important to the company. Besides the hassle of dealing with the IRS and other governmental agencies, the potential of employee or IC lawsuits is greater if the company s employee defining techniques are fuzzy. Finally, determine whether the worker is truly an IC, an employer of a third party, or an employee of the company When hiring ICs, the best line of defense from governmental agency audits, lawsuits, and disruption of business is to document every aspect of the employment relationship.
Courts tend to look closely at an employment agreement.
Also, the claim of an IC relationship is strengthened if the parties take the time to reduce their agreement to writing. Of course, the contract will only serve as a defense if both parties follow it. If an employer designs an agreement, it must have trained staff who will follow and enforce its outline. Since businesses are daily experiencing change in competition, demand, and regulations, it greatly benefits organizations to become more flexible. By using non-traditional workers, a company can move with the ebb and flow that business dictates.