Employment
Employee Contract
Texas
What are the worst states to hire 1099 independent contractors from because the state will likely classify as an employee?
I'm starting a 1099 remote-based staffing service and I want to stay away from hiring independent contractors with primary residency in states that are unfriendly toward their hiring. I don't want any misclassification issues so I want to stay away from those states altogether.
1 Attorney answer
Answer
Employment
Texas
Merry A.
ContractsCounsel verified
I'm a Washington State attorney and my answer does not constitute legal advice, and no attorney/client relationship has been formed. If the person working for you will be working remotely from his or her state, the employment law of that state will govern whether the person will be considered an employee or indepedent contractor. Regardless of where that person works, what will be most important is how your contract with that person is written, and how much you try to control the person's work hours, duties, and so forth. Speaking generally, an independent contractor should be given certain work, and a dealine and expectations, and be allowed to work at 2:00 a.m. or 2:00 p.m. and report amount of time worked, such as 8/13/23 1.6 hours. If you have set times for work, such as 8:00 a.m. - 5:00 p.m. Monday through Friday, a court will be more likely to find that the person is an employee, not an independent contractor. If you will be using a person to work in another state, I highly recommend that you consult with an employment attorney in that state to review any paperwork you use, such as an employment contract or work contract with an independent contractor. You can find such attorneys through "lawyer referral" through the state bar association in most states, or you can try finding employment attorneys through this national organization: NELA.org Although the analysis of an employee's/independent contractor will vary from state to state, here are two articles from the US Department of Labor that may provide some general guidance to you. https://www.dol.gov/agencies/whd/flsa/misclassification and https://www.dol.gov/agencies/whd/fact-sheets/13-flsa-employment-relationship I hope that I have been of help. I am an employment attorney in Washington State, and can review documents for Washington State but generally do not do any document drafting.