Light on Law-Independent Contractors and Employees

The IRS and state taxing agencies are auditing yoga studios and wellness businesses over the use of independent contractors. New York and California are targeting specifically the yoga community. If you are audited and you have misclassified your teachers as independent contractors, you may be liable for back taxes, fees and penalties.

As a business owner the burden is on you to prove that your teachers and other workers are independent contractors.

Do you know the difference between an independent contractor and an employee and have you properly classified your teachers and other workers?

This book has chapters on the federal and state laws on independent contractors, how to properly classify your teachers and workers, how to protect yourself from liability for misclassification, federal and state employment laws and tax issues.

Many studios are converting their independent contractors into employees because they no longer wish to face the risk of an audit. This book contains a new chapter on the conversion process, a checklist and extensive resources.

There are over 180 federal laws that regulate employees and every state has its own system of laws. Do you know the laws that govern the interviewing, hiring, managing and termination process? Are you using best practices for hiring and firing employees? Are you using professional employment agreements? All of these questions are answered in the book.

This book is a full color, 200 page PDF book. It includes 10 legal agreements (including model agreements for independent contractors and employees) and many other resources.

The list price of the book is $29.95.

Here is the table of contents from Light on Law for Independent Contractors and Employees:

1. On The Horns of the Dilemma

  • The Standard Business Model
  • The Use of Independent Contractors May Be Abusive
  • IRS and State Responses to Independent Contractor Abuse
  • The Employment Model-The Other Horn of the Dilemma
  • Make an Informed Decision on Your Business Model

2. The Federal Law of Independent Contractors

  • Introduction
  • The Federal Response to the Misclassification of Independent Contractors
  • The Common Law Test for Independent Contractors: Its All About Control
  • The IRS 20 Factor Test for Classification of Workers
  • The IRS Three Limbed Test
  • What Is a Studio’s Liability Under Federal Law for Misclassification?
  • IRS Relief From Tax Liability For Misclassification-Section 530
  • The IRS Voluntary Classification Settlement Program

3. The State Law of Independent Contractors

  • Introduction
  • California Independent Contractor Laws
  • California Worksheet On Employment Status
  • New York Independent Contractor Laws
  • New York Department of Labor Guidelines for Yoga Studios
  • Illinois Independent Contractor Laws
  • Texas Independent Contractor Laws

4. The Top 10 Misconceptions About Independent Contractors

5. How To Protect Yourself From Liability For Misclassifying Your Workers

  • Introduction
  • How To Build Your Case for Independent Contractor Classification
  • Make Your Teachers Employees
  • Landlord and Tenant Model
  • What If I Get Audited?
  • What Should Teachers Do About the Independent Contractor Problem?
  • Worker’s Compensation Insurance Compliance
  • State and Local Tax and Regulatory Issues

6. Federal Employment Laws

  • Introduction
  • The Fair Labor Standards Act
  • The Occupational Safety and Health Act
  • The Employee Retirement Income Security Act
  • The Family and Medical Leave Act
  • The Equal Employment Opportunity Laws
  • Title VII of the Civil Rights Act of 1964
  • Age Discrimination
  • Genetic Information Non-Discrimination Act of 2008
  • The Americans With Disabilities Act
  • The Equal Pay Act
  • The Older Workers Benefit Protection Act
  • The Pregnancy Discrimination Act
  • The Immigration and Control Act
  • Relationships With Interns and Volunteers
  • Work for Trade

7. State Employment Laws

  • Introduction
  • California Employment Laws
  • New York Employment Laws
  • Illinois Employment Laws
  • Texas Employment Laws

8. The Lifespan of the Employment Relationship

  • Introduction
  • Best Practices For Hiring Employees
  • Best Practices For Firing Employees
  • Social Media Posts and Employees

9. Employment Agreements

  • Introduction
  • Key Provisions In Employment Agreements

10. Tax Savings For Independent Contractors

  • Introduction
  • Tax Savings for Independent Contractors
  • Bartering
  • Work For Trade

11. How To Work With Lawyers Without Losing Your Wallet and Your Mind

  • When Should I Hire A Lawyer
  • How Do I Find A Lawyer
  • Use Paralegals
  • How To Choose A Lawyer
  • Twelve Strategies To Lower Your Legal Fees


  • Appendix A-IRS 20 Factor Test for Independent Contractors
  • Appendix B-IRS Three Limb Test and Worksheet for Classifying Workers
  • Appendix C-Independent Contractor Worksheet
  • Appendix D-New York Department of Labor Yoga Guidelines

Exhibits-The Forms Library

(You can copy the legal agreements from the book, paste them into Word and revise them for your specific situation)

  • A-1 Model Independent Contractor Agreement
  • A-2 Employment Agreement-Short Form
  • A-3 Employment Agreement-Long Form
  • A-4 Lease Agreement
  • A-5 Mutual Release Agreement
  • A-6 Form of Amendment to Agreement
  • A-7 Non-Disclosure Agreement
  • A-8 Bartering Agreement
  • A-9 Intern Agreement
  • A-10 Background Check Consent and Release

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