Risk Checker

Freelancer Misclassification Risk Checker

Answer 10 questions about your contractor relationship. You'll get an instant risk score based on the IRS and DOL's key classification factors — plus specific actions to reduce your exposure.

This tool provides directional guidance only and is not legal advice. A High result means you should consult an employment attorney.

Behavioral Control

Do you set or approve the hours they must work each day or week?

Do you direct how the work is done, not just what the outcome should be?

Have you provided training or instruction on how to perform the work?

Financial Control

Do you supply the main tools, software, or equipment they use to do the work?

Are they paid a regular weekly or monthly rate rather than per project or deliverable?

Are they restricted from working with other clients while engaged with you?

Type of Relationship

Have they worked with you continuously for more than 12 months?

Is their work central to your core business operations — not a peripheral service?

Do you provide any employee-style benefits — health insurance, PTO, or retirement contributions?

Documentation

Is there a signed independent contractor agreement in place?

How this checker works

The questions are drawn from the IRS's common law test and the Department of Labor's economic realities test — the two frameworks most commonly used to determine whether a worker is an employee or an independent contractor.

Each factor is weighted by how heavily courts and auditors rely on it. Behavioral control factors (schedule, method, training) carry the most weight because the IRS lists them first in its guidance.

A Low score does not guarantee you are protected. A High score means the relationship has multiple employee-like characteristics that a court or the IRS could use to reclassify the worker.

The three tests that matter

  • Behavioral control — Does the business control how and when the work is done? Directing work method is the IRS's primary indicator.
  • Financial control — Does the business control the financial aspects of the work? Supplying tools, regular pay, and exclusivity all point to employment.
  • Type of relationship — Are there written contracts, benefits, and is the work permanent? Ongoing arrangements performing core business functions carry the highest legal risk.

FAQ

Common questions about contractor classification risk.

What is worker misclassification?

Misclassification is when a business treats an employee as an independent contractor. The IRS and Department of Labor assess the actual working relationship — not just the label on the contract — to determine the correct classification.

What are the penalties for misclassification?

Penalties include back payroll taxes, unpaid benefits, fines of up to $1,000 per misclassified worker, and potential criminal liability for willful misclassification. State penalties vary and can be even steeper.

Does a contractor agreement protect me completely?

No. A written agreement helps establish intent but is not conclusive. Courts and the IRS look at the actual day-to-day working relationship. A contract that says 'contractor' but a relationship that looks like employment won't protect you.

What is the ABC test?

Several states (including California under AB5) use the ABC test, which is stricter than the IRS test. It presumes a worker is an employee unless the business can show the worker is free from control, performs work outside the usual course of business, and is engaged in an independently established trade.

Should I consult an attorney if my score is High?

Yes. This tool gives you a directional risk assessment based on the most common IRS factors, but it is not legal advice. A High score means you should speak with an employment attorney before continuing the arrangement as-is.