Employees and Contractors

Employees, Contractors, and Vendors

At HMLG, we realize your team—whether they are employees, contractors, or vendors—are the backbone of your business. Our extensive, real-world business experience enables us to provide pointed guidance to help you hire, manage, and retain the right people for your company’s success.

Comprehensive Support for Hiring and Managing Your Team


We work with you to navigate the complexities of hiring employees, engaging contractors, and managing vendor relationships. From crafting employment agreements to structuring independent contractor arrangements, we help you create clear, enforceable policies to comply with federal, state, and local regulations.

Customized Practices for a Dynamic Workforce


HMLG helps you:

  • Distinguish between employees and independent contractors, ensuring compliance with classification rules.
  • Protect your intellectual property and other company assets by implementing robust agreements and policies.
  • Establish vendor contracts which clearly define expectations and mitigate risk.
  • Develop employment policies and handbooks tailored to your unique business culture and goals.

Why Contractor Classification Is the Most Common Mistake

Misclassifying a worker as an independent contractor is one of the most expensive errors a growing company makes, and one of the easiest to make by accident. The tests vary by federal agency and by state, and a classification holding up in one jurisdiction can fail in another.

The exposure is usually discovered during an audit, a dispute, or diligence in a transaction, when back taxes, penalties, and benefit obligations arrive at once.

HMLG structures the relationship correctly and documents it in a way supporting the classification.

Creating Sustainable Employment Practices

At HMLG, we know strong, sustainable employment practices are key to minimizing turnover and fostering a positive workplace culture. Our collaborative approach ensures your hiring, onboarding, and workforce management strategies are both practical and scalable.

HMLG Employee and Contractor Services:

  • Employee, Contractor and Executive Agreements
  • Termination and Misconduct
  • Compensation
  • Stock Plans and Other Equity Incentives
  • Employee Handbooks
  • Onboarding and Separation
  • Harassment and Discrimination Prevention
  • Independent Contractor Classification
  • Non-Competes
  • IP and Trade Secrets Ownership

FAQ

What's the difference between an employee and an independent contractor?

The difference turns on control and independence, not on what the agreement says. Federal and state tests examine who directs the work, who supplies tools, whether the worker serves other clients, and how compensation is structured. Different agencies apply different tests.

What happens if a worker is misclassified?

Consequences can include back taxes, unpaid overtime, penalties, benefit obligations, and liability for unemployment and workers compensation contributions. Exposure typically surfaces during an audit, a claim, or diligence in a transaction.

Does my company need an employee handbook?

Most companies benefit from one once they have employees, because handbooks establish consistent policies and can support the company’s position in a dispute. Certain policies are required by state law once a company reaches specific headcount thresholds.

Who owns work created by a contractor?

Not automatically the company. Absent a written IP assignment, a contractor may retain ownership of what they create. This is one of the most common defects discovered during diligence.

What should an employment agreement include?

At minimum: role and duties, compensation, at-will status where applicable, confidentiality, IP assignment, and any restrictive covenants permitted in the relevant state. Non-compete enforceability varies significantly by jurisdiction.

ARE YOU READY TO TRANSFORM YOUR LEGAL STRATEGY?

Let’s connect! Whether you’re looking for an in-house legal team or need to augment your existing counsel, HMLG is ready to help you rock your business.

Contact us today to learn how we can assist you with practical, proactive, world-class legal support.

3213 Harbor Avenue SW, Ste. A2
Seattle, WA 98126
(206) 774-0879

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