We regularly caution employers about the risks associated with Independent Contractors, that could create issues at termination (and other times). Specifically the risk of enrolling them in employee benefit plans (which we do not allow), that can be one more nail in the coffin of them being deemed employees or even Personal Service businesses (PSB’s).
The article below provides a bit more detail of yet another case where an employer is forced (by the courts) to pay severance on termiantion.
Many organizations mistakenly believe that engaging a worker as an “independent contractor” or allowing them to file taxes as a contractor insulates them from employment law claims…