This video explores the very common and challenging matter of deciding if a worker engaged to perform work for a business is an employee or an independent contractor. The discussion in it covers reasons why that determination matters in terms of various types of potential liabilities for a worker’s actions, and tax and other obligations; the key factor of degree of control of the worker in relation to employee vs. independent contractor classification; and some common mistakes and implications of misclassification.
Host: Evan Absher, Assistant Clinical Professor, UMKC School of Law.
Featured Presenter: Chris Playter, Attorney, Playter Trial Lawyers.
Published: April 9, 2025.
Run Time: Approx. 8 minutes.
Grant support: This video was funded by a grant from the Ewing Marion Kauffman Foundation to UMKC as Grantee. The contents of this video are solely the responsibility of Grantee.
Resources list
(Last updated 4-9-2025)
THE FOLLOWING LIST OF SELECTED RESOURCES ON SOME LEGAL ISSUES FOR BUSINESS STARTUPS UNDER LAWS IN THE U.S. IS PROVIDED HERE SOLELY FOR GENERAL INFORMATION AND EDUCATIONAL PURPOSES AND NOT AS LEGAL ADVICE. ANYONE CONTEMPLATING AN ACTUAL BUSINESS VENTURE, TRANSACTION, OR OTHER ENDEAVOR SHOULD CONSIDER ENGAGING QUALIFIED LEGAL COUNSEL FOR RELATED LEGAL ADVICE. AT THE END OF THIS LIST IS SOME GENERAL INFORMATION FOR ENTREPRENEURS REGARDING WAYS TO ACCESS LEGAL COUNSEL.
Federal government resources:
Internal Revenue Service (I.R.S.):
- For some I.R.S. information on “Independent contractor (self-employed or employee?” and related tax obligations, see https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
U.S. Dept. of Labor (D.O.L.):
- For O.L. “Fact Sheet 13 Employee or Independent Contractor Classification Under the Fair Labor Standards Act (FLSA),” see https://www.dol.gov/agencies/whd/fact-sheets/13-flsa-employment-relationship
- For a D.O.L. list of some “Myths About Misclassification,” see https://www.dol.gov/agencies/whd/flsa/misclassification/myths/detail
- For some other D.O.L. information on “Misclassification of Employees as Independent Contractors Under the Fair Labor Standards Act,” see https://www.dol.gov/agencies/whd/flsa/misclassification
State government resources:
Missouri Dept. of Labor & Industrial Relations (MO-D.O.L):
- For some MO-D.O.L.) information for both workers and employers regarding “Worker Misclassification,” see https://labor.mo.gov/off-the-books#:~:text=Missouri%20law%20defines%20who%20is,an%20employee%20of%20a%20business.
- For a MO-D.O.L. “Quick Guide for New Employers” with some information on various employer obligations, see https://labor.mo.gov/quick-guide-new-employers
- For a MO-D.O.L. “New Employer Registration Guide,” see https://labor.mo.gov/media/pdf/new-employer-registration-guide
Kansas Dept. of Labor (KS-D.O.L.):
- For some KS-D.O.L. information on several questions regarding “Misclassification of Workers,” see https://www.kdor.ks.gov/Apps/Misc/Miscellaneous/MisclassFAQ#:~:text=The%20general%20rule%20is%20that,employee%20or%20an%20independent%20contractor%3F
- For some other KS.-D.O.L. information regarding employer obligations and consequences of Misclassification of Workers, see https://www.kdor.ks.gov/Apps/Misc/Miscellaneous/MisclassDefault
- For some information on KS-D.O.L. “Employer Services,” including an “Employer Toolkit” related to starting a business, see https://www.dol.ks.gov/employers/employer-services
Other States:
- Websites with information similar to that found on the Missouri and Kansas sites listed above are available in many states across the U.S.
SOME INFORMATION ON ACCESSING LEGAL COUNSEL
For some information on ways entrepreneurs can access legal services in connection with their business endeavors, see:
- Regarding Finding Lawyers generally, see https://eshiplaw.org/resources/resource-links/22-accessing-legal-services/56-lawyer-referral-networks
- For some information about seeking Affordable Legal Services, see https://eshiplaw.org/resources/resource-links/22-accessing-legal-services/54-affordable-legal-services
- For a state-by-state index of Clinics at U.S. Law Schools that provide legal services on various types of entrepreneurship and transactional matters, see https://eshiplaw.org/entrepreneurship-clinics-map
Watch the other Run the Traps video:
