Employee or Independent Contractor

See accompanying model document below.

This content conveys general information. Do not use it as a substitute for legal advice. Any attorney general opinions cited are available from the League’s Research staff.

Find out the factors to look at in making the determination of whether a worker you hire should be treated as an employee or an independent contractor. Your decision can have far-reaching financial consequences for the city, including workers compensation liability, unemployment insurance penalties, Fair Labor Standards Act obligations, PERA status (especially for city managers, clerks or treasurers), IRS and Social Security regulations.

Use this model document with the discussion on “Employee or Independent Contractor”:

Independent Contractor Agreement, LMC model agreement (doc)