Final answer:
To maintain an independent contractor relationship, the contractor must have control over their work, dictate the relationship via a contract, be responsible for their own tools, receive payment for service rendered, and manage their own workload. Misclassification can lead to legal issues as staffing agencies and employers are jointly accountable for worker safety, similar to their obligations toward temporary workers.
Step-by-step explanation:
To maintain an independent contractor relationship, specific conditions must be fulfilled. Unlike temporary workers who are essentially treated as permanent employees, independent contractors operate under different rules. It is important to distinguish between the two to avoid wrongly classifying an employee as an independent contractor. Staffing agencies and host employers have joint accountability for the health and safety of temporary workers, meaning they must both comply with workplace regulations. When dealing with independent contractors, however, they are not generally subject to the same level of oversight from the business engaging their services.
For a successful independent contractor relationship, the following general rules must be met:
- The contractor must have control over how the work is completed.
- The relationship is typically dictated by a contract for a service or result.
- The contractor is responsible for their tools and resources necessary to complete the job.
- Payment is often for the finished service, not by hours worked.
- The contractor is free to work for multiple clients and manage their workload as they see fit.
Failure to properly categorize an independent contractor may result in legal consequences, as OSHA and other regulatory bodies could hold the company responsible for any violations related to worker safety and health, similar to their stance with temporary workers.