Can I avoid stringent state independent contractor laws that often require hiring an employee, by registering as a business and being subcontracted work?

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Can I avoid stringent state independent contractor laws that often require hiring an employee, by registering as a business and being subcontracted work?

I am faced with the option of moving to another state or giving up a job offer. The employer hires independent contractors in states throughout the country but the laws for independent contractors in my state are more stringent. Although the job is a work from home job, under the law in my state I would have to be hired as an employee, and the company (based out of another state) cannot afford hiring an employee. Therefore, I am faced with the option of losing a great job opportunity or leaving my husband and moving to another state to work from “home” so I can keep the job.

Asked on July 23, 2012 under Employment Labor Law, Massachusetts

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

There are several possibilities to avoid the stringent independent contractor laws of the state that you reside in. They are as follows:

1. have an independent contractor's agreement drafted stating that it is entered into in the state where the company that you do work for is based and that the laws of that state shall apply. make sure you have a business attorney review such a document before you sign it;

2. create an entity such as a limited liability company or a corporation and have the business contract be entered into between your entity and the company that you want to do work for.


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