From the Hotline: Time Off Pay and Independent Contractors
Question: Do I have to provide paid time off for long-term independent contractors?
Answer: Independent contractors, when properly classified, are not employees of the company and are not eligible for company-sponsored benefits such as paid time off. Employers should ensure that all independent contractors are classified correctly to prevent violations of IRS and Department of Labor requirements. Employers should review the long term independent contractor’s agreements annually to determine if the relationship remains that of an independent contractor or if it has subtly transformed into more of an employee-employer relationship.