What is the motivation for companies to classify workers as independent contractors instead of as employees?

Words: 165
Pages: 1
Subject: Uncategorized

Review cases about lawsuits against Lyft and Uber for misclassification of workers as well as the Reuters article attached about FedEx settling lawsuits filed against the company for misclassification of its drivers.

Discuss the following points:

1.) What is the motivation for companies to classify workers as independent contractors instead of as employees?
2.) What criteria do the courts use to determine whether a worker is an employee or independent contractor?
3.) For companies that employ workers classified as independent contractors, what steps can they take to be sure that they are not misclassifying employees?

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