Independent Contractor Agreements
Misclassifying a worker as an independent contractor instead of an employee can expose Colorado businesses to steep legal and financial consequences. Employers often struggle with complex and overlapping classification standards, and even small errors can lead to wage claims, back taxes, audits, and regulatory penalties.
Beyond financial fallout, misclassification can damage your company’s credibility and disrupt your workforce. GLO helps businesses navigate these risks with clear, actionable legal support. We assist in properly classifying independent contractors, drafting enforceable contracts, and implementing sound policies that stand up to scrutiny. Whether you're building a flexible team or scaling operations, GLO ensures your contractor relationships are compliant, secure, and built to last.
Employee vs. Independent Contractor: Getting Classification Right
In Colorado, workers are presumed to be employees unless proven otherwise. Courts focus on the “economic realities” of the relationship, not just the terms of a contract. Employees are typically subject to company control, receive benefits, and have taxes withheld by the employer. Independent contractors, by contrast, operate with greater autonomy, provide their own tools, handle their own taxes, and are not entitled to employee benefits. Correct classification is critical, as misclassifying workers can result in legal and financial penalties.
Overcoming the Employee Presumption and Legal Implications
To overcome the employee presumption, an employer must either show that the worker is free from control and is independently engaged in a relevant trade—or produce a written agreement that satisfies nine specific legal criteria under Colorado law. Worker classification impacts tax responsibilities, liability exposure, and access to benefits like workers' compensation. Proper documentation and a clear understanding of the law are essential to avoid disputes and stay compliant.
GLO Helps Colorado Businesses Work with Independent Contractors
Hiring independent contractors in Colorado can give businesses flexibility—but it also comes with legal risks. Misclassifying a contractor as an employee, even by mistake, can lead to tax penalties, back wages, audits, and lawsuits. Because Colorado law presumes workers are employees, the burden is on the business to prove otherwise—with more than just a signed contract.
GLO works with businesses to legally structure independent contractor relationships from the start. We help you draft compliant agreements, apply Colorado’s legal tests, and document the independence of your contractors to avoid misclassification. Whether you're hiring freelancers, consultants, or gig workers, GLO ensures your contractor relationships are legally sound and your business is protected.
Contact GLO today to safeguard your business from costly misclassification risks and ensure your independent contractor relationships are fully compliant under Colorado law.
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