With the 2019 Uber court ruling in mind, there are a few things all companies that employ 1099 contractors need to know.
#1: Businesses Utilizing Contractors For Low/Middle Skilled Positions Are Exposing Themselves To An Unusual Level Of Risk
If you hire an on-demand, 1099-form contractor for a low-skill job, you are obliged to cover any legal and/or medical expenses related injuries in the workplace. Companies expose themselves to more financial liability, including back pay of IRS taxes and benefits, for misclassified contractors. The IRS has a strict 20 item checklist to designate who can be considered a contractor and who cannot.
#2: Businesses Now Share Legal And Civil Responsibility With Third-Party Labor Contractors
Companies that use more than 5 1099 contractors from a workforce service (third party or otherwise) now share liability for any legal or civil action taken against said workforce service providers. [CA Assembly Bill 1897]
#3: If You Are Looking To Safely Fill Temporary, Seasonal Or Short Term Positions, Call Employbridge.
Employbridge's digital staffing platform makes it faster and easier for companies to find compliant on-demand workers. We give companies and workers the flexibility of an on-demand workforce without the liability and shortcomings of a contractor model. We focus on staffing warehouse workers, general laborers, movers, data entry positions, and delivery drivers. All workers hired through Employbridge have legal employee status complete with workers compensation, automated payroll, and background checks.
