The presumption is that anyone working for you is an employee and if you are hiring someone to work in your home or for your business and you want them to be treated as an independent contractor, you should have an agreement in place that is signed by both of you. The agreement, in and of itself, won’t settle the issue; but without it, it is harder to argue that the person working for you is not an employee.
You may ask, “Why does it matter?” An employee is entitled to paid time off, a minimum hourly wage, employer contributions to social security and to collect unemployment insurance against their recent employer(s), among other benefits. In California, it Is now very hard to qualify as an independent contractor, but in Arizona this is still a very typical working relationship when the conditions fit the relationship and the parties have a signed agreement.
The relevant statutes, at a minimum, are Arizona Revised Statutes (A.R.S.) 23-1601 and 23-902 D.
If you are thinking of hiring someone or have someone working for you already, you should define the terms of your relationship to them as an employee or independent contractor. Both relationships should be covered by key terms and conditions, but if you want to ensure you do not find yourself subject to employment claims and penalties, having an independent contractor’s agreement in place is critical.
Disclaimer – This article is for information purposes only. It is not intended to provide legal advice to anyone. If you require advice, you should reach out to our firm or another lawfirm to discuss your facts and circumstances to obtain legal advice.
Is the Person Working for You an Independent Contractor or an Employee?
By C. Margaret Tritch