To embed, copy and paste the code into your website or blog: Determining whether an individual providing services for a company is an independent contractor or employee can be confusing to business owners. Employees are eligible for many rights, benefits, and employment law protections that are not available to independent contractors (“ICs”). There can be serious state and federal penalties for businesses that get the classification wrong. Business owners should therefore be mindful of potential changes coming that could affect the classifications of those who work with their company. Entrepreneurial individuals who want the freedom to establish their own business, on their own terms, and to work for themselves can also be impacted by these changes.