Thursday, January 31, 2008

Employers Another Reason Not to Treat Employees as Independent Contractors

Some employers decide that classifying workers as subcontractors instead of employees saves them money by not needing workmen's compensation insurance. For employers this decision exceeds the bad business judgment of replacing Coca-Cola with New Coke.

Workmen's compensation exists to protect employers from tort suits by employees. Without workmen's compensation, employers expose themselves to a potential tort claim. Just something to think about on this last day of January.