I am a contractor getting paid by Medicaid. I have many subcontractors doing services for more than 40 hours a week. My question is if I have to turn them into employees in order to pay them the over time hours or I just can pay the over time in the same
paying a subcontractor over time without having to turn them into employees
1 answer | asked Dec 29, 2015 09:16 AM [EST] | applies to Florida
Answers (1)
This is an issue you will want to address with more facts in hand. The question will be whether your subs are truly independent contractors or employees. If they are employees and you are considered a covered employer under the FLSA, there is a legal obligation to pay the OT rate. If they are independent contractors, as that term is defined by the FLSA and IRS, then there is no obligation to pay. Don't make this decision without consulting with a lawyer. Not complying with OT pay obligations can be very costly. Best of luck.
posted by Arthur Schofield | Dec 30, 2015 07:46 AM [EST]
posted by Arthur Schofield | Dec 30, 2015 07:46 AM [EST]
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