In its March 16 issue, PRWeek's Agency Business column extolled the benefits of using freelancers in a down economy. Clearly, firms now seek to do more with less, and reduce salary, benefits, and tax costs. Many agencies use freelancers to attain these goals, but in doing so, are unknowingly taking significant liability.
The word “freelancer” has no legal meaning. The law distinguishes between an employee (for whom the employer has tax and employee benefits obligations) and an independent contractor (who is ...