What primary implication does functioning as an independent contractor (1099 role) have regarding the worker's status at the client company?
They are generally not considered an official employee of the company where the work is performed
When a worker engages as an independent contractor, the relationship established with the client company is fundamentally transactional, focused solely on the delivery of agreed-upon services for a defined duration. This transactional nature means the worker is not classified as an official employee of the client. This distinction is crucial because it removes the worker from the client's internal employee structure, impacting eligibility for standard employee benefits, workplace protections afforded to direct staff, and liability structures. The worker is essentially providing business services to another business, even if that business is operating as a sole proprietorship.
