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Employees vs. Independent Contractors: Cheat Sheet Correctly classifying workers as employees or independent contractors is essential for a company to comply with various federal and state laws. This cheat sheet outlines the U.S Department of Labor’s economic reality test for classifying workers. It also includes the IRS’ description of the common law test for determining worker status. Employers can use this cheat sheet to help confirm they are considering the relevant factors when classifying workers.

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