Contractor laws are tricky business, and the laws are just getting more strict.
And the truth is that you can't totally contract your way of a potential employment dispute. But there are some good preventative steps you can take to stay in compliance.
Each state falls generally into 1 of 3 camps when it comes to independent contractor laws.
(1) They're business friendly and implement an old, "totality of the circumstances test;"
(2) They're "worker friendly," and have the newer "ABC test;" or
(3) They use a modified version of the ABC test.
It's important to know your state's rules because misclassifying workers comes with steep penalties.
And we need to know the rules not only based on where we live, but also in each state in which we have contractors.
The good news is...
Many states have relatively clear steps to follow (if you know how to find them).
One of those steps in many states requires a written contract between both individuals. Many also require contractors to be properly licensed.
There's a few steps most of us can take to make sure we're compliant with these requirements, like...
Having a solid contract that meets the specific requirements under the law.
Requiring proof of necessary licenses from new contractors.
Gathering this information in a comprehensive onboarding process.
If you want some help making sure you know your state rules and that you're meeting these requirements...
Grab my new mini course, Unf*ck Your Hiring and get access to:
- Contractor Compliance Framework Training - a full module on contractor laws around the nation to help you determine whether you can hire contractors in your state.
- Compliant Contractor Onboarding - a quick, recorded, video training with support guides on how to properly onboard contracts.
- Contractor Agreement Template - my contract template specifically drafted with AB5 in mind.
- Contractor Compliance Framework Training - $100 Value
- Compliant Contractor Onboarding - $100 Value
- Contractor Agreement Template - $150 Value
What it Costs: $100
Join us Live!
At the end of June, I'm running a live round of Unf*ck Your Hiring. We will have three live training/Q&A calls. They are scheduled for:
Monday, June 28th at 10:00 a.m. PST
Wednesday, June 30th at 10:00 a.m. PST
Friday, July 2nd at 10:00 a.m. PST
Signup before Monday the 28th to get an invitation to the live round of UYH.