What Is A “Common Law Employee?”

As part of PPACA, every employer needs to determine whether or not they are “large” which, according to Health Care Reform, means employing 50 or more full time or full-time equivalent employees.  Who exactly does this include?  Contractors? While there is no set definition of a “Common Law” employee, there are some parameters to guide employers:

  • Hirer has control over how an individual performs a task and where the tasks are performed
  • Length of relationship is indefinite
  • Hirer provides material needed to complete the task
  • Ability to assign additional tasks
  • Sets work hours
  • Payment is made on a set schedule of time
  • Work is part of regular business
  • Benefits and perks are provided and person is invited to company events
  • Training is provided
  • Expenses are reimbursed

These are general parameters only.  For a more in depth description of the Common Law Employee, we would be happy to send you a White Paper on the subject.  Please compete this Contact Request form referencing the Common Law Employee White Paper in the Comments section.

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