Legal Forum
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
Welcome to the Legal Forum. Before posting, you may want to look through past pages of this Forum to see if your question has been answered. Also, search the Research Center.
Please note that this forum is for workforce-management professionals only, and not for employees.
Posted: 2001-01-16 10:28
Is it my obligation in HR to get I-9 forms from all independent contractors in my company's employ?
Also, I have heard conflicting information regarding independent contractor status/classification when it comes to benefits. My company pays the health insurance premium for our common law employees. However, we offer independent contractors the same benefit, with the stipulation that the contractor pay (out-of-pocket) the entire premium for this benefit.
Does this in any way, complicate or alter the individuals status as independent contractor?
JimCarabetta
Joined: Sep 13, 2001 Posts: 3335
Posted: 2001-01-17 04:34 Off the top of my head, I wouldn't see where you could ask for I-9 documentation from your ICs, or would have to, any more that you would ask for those proofs from the company that plows snow from your parking lot or the people that handle your landscaping at the company's building.
On the other hand, I also can't see where your policy would allow, and your carrier would approve, such an open enrollment policy where anyone can get in by virtue of paying the premium and having some employment affiliation with your company. What's in it for the carrier? Uncontrolled increased risk for reduced rates by virtue of the saving incurred by participating in your plan. I'd check your plan, the master policy, and it may limit you to employees. By virtue of extending the benefits, you may have arguably agreed that they are indeed employees.
And as the provider of coverage, you'd be bound be ERISA, COBRA, HIPPAA, and the rest... responsibilities that are part of being the actual employer. My guess is, yes, it complicates matters a lot.. the DOL is not real amenable to treating people as employees for some purposes but not for others, and your inclusion may have redefined their status.
I'd discuss your present arrangement with an attorney well-versed in wage&hour matters.
EpsteinBecker&Green,P.C.
Joined: Sep 13, 2001 Posts: 8461
Posted: 2001-01-17 06:42
In theory, an employer need not (and cannot) require independent contractors to submit I-9 documentation. In theory, an employer could offer independent contractors the right to participate in benefit plans. In theory, none of this would be a problem for the independent contractor relationship. Of course, that's a very good theory.
The real issue is whether these folks are independent contractors or employees. Let us start with the benefits issue. I have never seen a benefit plan that expressly allows independent contractors to participate. If yours does so, no problem. If yours does not, then you got a problem. Either your are falsely representing that the IC's have coverage when they do not (which means you might have to foot the bill if the carrier does not, which I suspect they will not when the metal meets the road) or they are really employees. My guess is that they would be considered to be employees. That means you would have an I-9 obligation (along with all the other obligations that go along with employees).
I suggest you consult with legal counsel. Frankly, you could have a big problem brewing here.
cg660
Joined: Sep 13, 2001 Posts: 74
Posted: 2001-01-18 08:17
Thank you both your advice! Looks like I have some investigating to do!
The Business of Management
Workforce Management editor John Hollon analyzes and comments on business, management and the art of leading a workforce.
Workforce Washington
Washington staff writer Mark Schoeff Jr. provides an insiders insights to the workings of our nations capital from the workforce management perspective.
Global Work Watch
Staff writer Ed Frauenheim blogs about how companies worldwide marshal and manage their workers.
= Member Only
Posted: 2001-01-16 10:28 
