Independent Contractor or Employee? Tailoring Your Contracts to Avoid Misclassification
Instructor
Mark Schwartz
CHOOSE YOUR ACCESS
Webinar details
Everything you'll learn in this session
Webinar Description
Overview
Determining whether a worker should be classified as an employee or an independent contractor requires more than choosing the right label for a contract. The actual working relationship, including the degree of control, economic dependence, permanence, skills, and other circumstances, can be important to classification under applicable laws. The U.S. Department of Labor also emphasizes that the parties’ actual practices can matter more than what a contract theoretically permits.
This practical webinar examines how organizations can structure independent contractor agreements and working relationships with classification considerations in mind. Participants will explore contract provisions, operational practices, documentation, and common warning signs that may create misclassification concerns. The session will also address the DOL’s 2026 proposed rule and its proposed economic-reality framework, while distinguishing proposed guidance from current requirements.
Why You Should Attend
This session will help you:
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Understand the distinction between employees and independent contractors
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Recognize why a contract label alone does not determine classification
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Understand the relationship between contract terms and actual working practices
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Identify provisions that can create classification concerns
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Evaluate control and independence within the working relationship
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Understand economic dependence and business-for-oneself concepts
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Recognize common misclassification warning signs
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Improve independent contractor agreements and related documentation
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Identify when a classification should receive additional review
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Reduce the risk associated with inconsistent contracts and practices
Who Will Benefit
This webinar is ideal for:
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HR professionals
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Employment and compliance professionals
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Business owners and executives
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Managers and supervisors
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Payroll professionals
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Finance and accounting professionals
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Procurement and operations professionals
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Legal and contract professionals
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Anyone responsible for engaging or managing independent contractors
Areas Covered in the Session
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Employee vs. independent contractor: why classification matters
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Why contract language alone does not determine worker status
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Understanding the economic-reality approach under the FLSA
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The importance of the parties’ actual working relationship
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Control: who determines how, when, and where work is performed
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Opportunity for profit or loss
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Worker investment and business expenses
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Permanence of the working relationship
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Skill and initiative
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Whether the work is integral to the business
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Reviewing independent contractor agreements
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Contract provisions that support clearly defined business relationships
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Aligning contract language with actual business practices
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Common classification mistakes and warning signs
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Documentation and recordkeeping considerations
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Using consistent practices across contractors
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State and local classification standards and why they may differ from federal standards
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Overview of the DOL’s 2026 proposed rule and its five proposed economic-reality factors
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Practical scenarios for evaluating worker relationships
Meet your speaker
Mark Schwartz
Mark Schwartz is an employment tax specialist and has over 15 years of employment tax experience as an independent consultant and as a payroll tax auditor with the State of California. He has managed an audit caseload of 20 ongoing audits, from small home-based businesses to large multi-national corporations. He is expert at defining regulatory and statutory requirements from local, State and Federal government agencies; and helping the average businessperson understand what that means to their business. He has processed weekly and bi-weekly payroll checks plus tax forms for businesses with hourly as well as exempt workers, multistate operations and a wide variety of benefits.
Mr.Schwartz provides consulting services encompassing payroll processing and payroll tax issues. These include payroll tax minimization, payroll tax compliance reviews, independent contractor studies, use of electronic transfers, deductions, benefits, etc. Mark has represented both clients and the State in front of the State Appeals Board. He understands the complexities of local wage laws, unemployment and disability claims, and other wage and benefit issues affecting your employees.
Mark prides himself on his outstanding customer service skills. He listens attentively to his clientele, helping them bridge the gap between the small business world and Government bureaucracy. He eagerly assists with clients needs and feels that educating clients toward faster, accurate and more complete payroll processes provide the most value.
Mark is a participating member of the American Payroll Association. He earned his BA and MBA in Finance at Santa Clara University. He has held Certified Internal Auditor and Certified Investment and Derivatives Auditor Credentials. Mark is currently pursuing a Certified Payroll Fundamentals Credential with the American Payroll Association.