How to manage independent contractors effectively

Whether a worker is an employee of a business or an independent contractor with that business is an issue that can have many significant problems. Generally, an employee is someone who works for an employer. An employee is controlled by the employer and has little discretion in the timing and performance of his tasks. According to Wilson, on the other hand, “independent contractors contract to do work and have the ability to perform the work without being subject to the control of the employer as long as they meet the expected results required by the contract (Wilson, 1999).”In short, independent contractors are independent business people who are hired to perform specific tasks. They are just like any other vendor, except they perform services rather than provide tangible goods and basically are in the business for themselves. Thus, they are not the hiring firm’s employees. They are not eligible for unemployment, disability, or workers compensation benefits (California Chamber of Commerce, 1991). There is no certain and consistent definition to distinguish an employee and an independent contractor. However, there are a number of rules that govern whether someone is an employee or an independent contractor; and each of the rules has its own characteristic in determining the issue.