Contingent Workers and Employee Benefits: Do You Know Who Your Employees Are?

Abstract

Microsoft and Bell Atlantic learned the hard way that just because you call someone a contingent worker—or a temp, freelancer, independent contractor or leased employee—does not mean that the worker cannot later come back and claim to be a bona fide employee, entitled to benefits or overtime pay. Many factors have led to the growth of the contingent workforce, so employers need to know how to structure and maintain a relationship that is not just a standard employeremployee relationship in disguise. Courts across the country are weighing in on the issue, too. This article examines the growth of the contingent workforce, summarizes the current state of the law with respect to such workers’ entitlement to benefits and suggests factors employers should consider when classifying contingent workers.