Start-Ups Finding the Best Employees Are Actually Employed
Under the independent contractor system, workers are considered to be tiny businesses responsible for their own expenses and taxes. A key feature of an independent contractor relationship is autonomy. According to the Internal Revenue Service, a business that hires an independent contractor is not entitled to dictate how or when the contractor performs a job. This limits a company’s power to train and schedule its workers.
.. “This is M.B.A. 101 stuff,” said M. Diane Burton, a professor of human resource studies at Cornell University. “When people are your source of competitive advantage, it’s clear that a long-term employment relationship and what we would call a ‘good job’ is good for the workers and good for the companies.”