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Hiring contractors? Let them work for others, too

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in Compensation and Benefits,Hiring,Human Resources

If you use independent contractors, make sure they have the freedom to work for other clients and largely set their own schedules. Those criteria are important for determining whether someone is eligible for unemployment.

Recent case: Edward Bush is an experienced Microsoft systems tech who found a six-month assignment by placing his résumé on an Internet job site. He signed a contractor agreement that allowed him to work for companies that didn’t compete with the one he was working for.

When the assignment was over, he filed for unemployment and was approved. The company that had used his services appealed.

The Pennsylvania Commonwealth Court reversed, ruling that he was ineligible because he set his own schedule and was free to work for other organizations if he wanted. (Resource Staffing v. Unemployment Compensation Review Board, No. 1875 C.D. 2009, Commonwealth Court, 2010)

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