Independent Contractors & Employees: Navigating the Differences

Classifying a worker as an independent contractor when the law sees an employee is one of the most expensive mistakes a small business can make — back taxes, penalties, interest, and unpaid-benefits claims that can reach years into the past. This Launch & Learn breaks down the real distinctions between independent contractors and employees: the tests Washington State and the IRS actually apply (not the myths), what misclassification costs and how audits get triggered, Washington wage and hour rules including tips and service charges, protected leave obligations, and Seattle's Independent Contractor Protections Ordinance — one of the strictest in the country. Whether you currently use contractors, are deciding how to structure your next hire, or are a contractor yourself wondering about your own status, you'll leave knowing exactly where the lines are and how to stay on the right side of them.