Contract Workers' Rights

Contract workers perform paid work for businesses or companies but are not considered to be salaried employees. Contract workers usually work by assignment and and are paid hourly, sometimes by a third party. Contract workers can be referred to as freelancers, consultants or temporary workers. While contract workers are not entitled to all the legal benefits and protections given to employees, contract workers do have actionable rights.

Contract worker on the job

Significance

The contract worker has more control and autonomy over his work than most salaried employees. Contract workers are free to take other assignments and can contract with more than one business at a time. However, because they are independent workers and not employees, contract workers have different rights under the law.

Identification

The IRS has devised a list of factors to distinguish contract workers from employees so as to prevent employers from inadvertently violating a contractor's rights. These factors include whether the business has the right to direct or control the work performed by the contractor, whether the business controls the financial aspects of the contractor's job and how the contractor and the business perceive their relationship.

Considerations

Contract workers can aid employers by offering flexibility and saving on expenses. Contract workers can reduce a company's exposure to lawsuits such as wrongful termination and discrimination because they are not covered by federal and state employment laws. However, contract workers are covered by the Occupational Safety and Health Act and do have the right to a safe working environment. Contract workers can also sue for negligence if they are injured on the job.

Benefits

As contract workers are not employees, contract workers' rights include the ability to refuse assignments, the right to leave an assignment and the right to time off from an assignment (although without pay). Contract workers also generally have more independence and control over the method and manner of their work.

Warning

While contract workers do have rights to a safe workplace and to any protections given to them under contract, they are not protected under the law to the extent that employees are. For example, contract workers cannot bring lawsuits for workplace discrimination or harassment. Contract workers are also not entitled to the same benefits, retirement, sick leave or vacation pay enjoyed by employees.

References

• Findlaw
• IRS
• OSHA