IS IT IMPORTANT TO HAVE WRITTEN CONTRACTS WITH MY EMPLOYEES OR INDEPENDENT CONTRACTORS?

Yes, there is an advantage to an employer having written contracts with its employees because there could be provisions such as non-compete and confidentiality, which are important to protect your business. It is very important to have written contracts with independent contractors. One of the main reasons is to detail why they should not be treated as your employees by the taxing and unemployment compensation authorities. You may find, after talking with your attorney, that the person you wish to classify as an independent contractor will likely be considered an employee by those authorities. It is to your advantage to know this in advance. Perhaps some adjustments in work description, compensation or oversight may save you money and headaches.


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