This can be an expensive mistake. On this topic Newsletters Managing the IT Professional. An important ruling came from the Microsoft permatemps litigation, Hixson says. Just because your contractors sign an agreement saying that they're contractors and not employees, the agreement does not control. The legal test does.
Control is indicative of employee status.
Courts have relied on it to test employee classification. Treat temps differently Even if employers are careful to define temporary employees as nonpermanent, casual, or seasonal workers in employee handbooks, employment contracts, and other corporate documents, managers' actions can affect employee classification, Hixson says. Companies should also avoid giving temporary employees and contractors business cards or set hours of employment. Just because an employee is temporary doesn't mean he or she is without rights. Temporary employees are also protected by law from sexual harassment.