There is an important distinction between an “employee” and an individual who is “self-employed.” If the hired person is self-employed, they are technically an independent contractor who is not entitled to workers’ compensation, vacation days, or any other benefits afforded to employees.
Contents |
Types (2)
Independent Contractor Agreement – Defines the working relationship between an independent contractor and their client.
Download: PDF, Word (.docx), OpenDocument
Subcontractor Agreement – An independent contractor may use this agreement to reassign contractual obligations to a subcontractor.
Download: PDF, Word (.docx), OpenDocument
Laws
- Labor Statutes: Title 60
- Definition of Employee: § 60-1-1
- Minimum Wage: $9.95 (§ 60-11-3 & Dept. of Labor & Regulation)
- Overtime: Federal min. – one and a half (1.5) times the employee’s standard wage (29 C.F.R § 778.107).
- Record Keeping: Employers must maintain employee work records for a period of four (4) years (§ 61-3-2).
At-Will Employment
Permitted? Yes, employment with no specific end date can be terminated for any reason (§ 60-4-4). However, employment cannot be terminated due to the following:
- Tobacco use;
- Refusal to engage in illegal behavior;
- Attempt to exercise a lawful right (e.g., file for workers’ compensation); or
- Race, color, creed, national origin, religion, sex, ancestry, or disability.