Open Shop Contractors often gain an advantage over Union Contractors by misclassifying workers as independent contractors when they should be classified as employees. This cuts costs while putting workers in danger. Here are the facts:
FACT:
Those working in construction may not be classified as an independent contractor unless:
- They have a written contract with the business or person they work for.
- They control and direct their own work.
- They possess the tools that are needed to perform the work.
- Their arrangement with the business they work for allows them to earn a profit or suffer a loss from their work.
- They are an owner or partner in their own business.
- Their business location is separate from the location of the business or person that hired them to perform the construction.
- They previously worked as an independent contractor, or they hold themselves out to the public as available and able to work as an independent contractor.
- They have liability insurance of at least $50,000.
FACT:
Anyone who misclassifies an employee as an independent contractor could face criminal prosecution, administrative fines up to $2,500 per violation and a court-issued stop work order.