Page 8 - White Paper-Independent Contractor Laws
P. 8
• The only other benefit you are required to provide employees is
accrued sick time up to forty hours (one week), and even this only has
to be paid time off if you have 11 or more employees. Vacation, paid
holidays, and other time off is something you can, but do not have to,
provide.
• You can control overtime. Non-exempt W-2 employees are entitled
to be paid time and a half for hours worked over 40 in a week, while
1099 workers are not. However: (i) if you have a 1099 worker putting
in 40+ hours a week you may have a very unpleasant surprise down
the road if that person claims to really be an employee; and (ii) you
can implement and enforce policies requiring approval for overtime
hours that will control your potential overtime costs.
• Finally, some of the “costs” can actually be a benefit to you. For
example, if your employee is injured on the job and you have
provided workers compensation insurance, in most circumstances
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