Real independent contractors are easy to identify. They are hired to perform a specific project, they bring their own tools, they have their own business cards, and they send you an invoice when the work is done.
If you hire people to perform ongoing work for your company, tell them when to show up and what to do, those people are not independent contractors.
I am oversimplifying things to make a point: the concept of “contract labor” is overused in the construction industry.
Contrary to popular opinion, hiring people as “contract labor” is not a legal option if you control when, how and where they perform the work. You can’t fix the problem by having each individual sign an independent contractor agreement. Government authorities do not have to accept your paperwork: they will look at the reality of the arrangement and decide whether there is an employer-employee relationship. Read more » about Independent Contractors – Keeping it Real