The label does not control
Calling someone a contractor in a written agreement does not make them one. Agencies and courts look at how the relationship works in practice.
What agencies look at
Common factors include how much control you have over when, where, and how the work is done, whether the person has their own business and other clients, who supplies the tools, and whether the work is central to your business.
The risks of misclassification
A worker treated as a contractor who should be an employee can lead to unpaid payroll taxes, penalties, and wage claims. Different agencies use different tests, so one answer may not fit all of them.
Ways to lower the risk
Use a written contractor agreement, let the contractor control their own methods and schedule, keep their work separate from your employees’, and review the relationship when it changes.
This guide is general information, not legal advice for your situation.