Employment Law Mistake: Misclassifying Employees as Independent Contractors

/cdklawyers.com// 12/24/2011 In these tough economic times, many companies attempt to cut costs by hiring independent contractors instead of employees. Using independent contractors can be financially advantageous since a company that hires an independent contractor does not pay certain taxes, health benefits, unemployment compensation insurance, or workers’ compensation insurance. But, while many employers hire independent […]

Fifth Circuit Court of Appeals Addresses Fair Labor Standards Act Issue

/cdklawyers.com// 08/20/2010 The Fifth Circuit Court of Appeals recently ruled that a worker was an independent contractor—not an employee—and thus not entitled to overtime pay under the Fair Labor Standards Act.  Thibault v. BellSouth Telecom. Inc., et al, No. 08-31226 (5th Cir. July 26, 2010), available at http://www.ca5.uscourts.gov/opinions/pub/08/08-31226-CV0.wpd.pdf.  The worker owned a profitable business in […]

Pros and Cons of Hiring Independent Contractors

/cdklawyers.com// 02/06/2010 Given the country’s economic situation, some businesses have contemplated using independent contractors—instead of hiring employees—as a possible way to save money.  Keith Clouse, a Dallas employment law specialist, notes that a company should carefully weigh the pros and cons of relying on independent contractors before altering its staffing plan. Using independent contractors can […]