Q. We have some paid consultants who have been working for us for two years. Are there any ramifications if we refer to these consultants as ?staff? and enter them in a national database as our staff? ? Becky, Nevada
A. Yes, absolutely. Consultants have brought several prominent and successful lawsuits claiming they were entitled to employee benefits and other advantages of employment. Some of the best-known cases were brought against Micro??soft in the 1990s after its stock became quite valuable.
You may also be tagged with ?joint-employment? status if your organization directs the consultant?s day-to-day work closely. If they are not employed by another independent entity, you might experience employment tax complications as well.
As a result, many employers have adopted strict policies against hiring consultants for long periods (such as a year). Consult a local attorney to see what?s best for your organi??za??tion. If a perceived risk exists, consider converting these indi??viduals to employees, or regularly replacing the individuals who perform that role through any third-party contract.
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