Worker Classification in Dental Practices Many dental practices have both employees and independent contractors among their team. “Increasingly, dental hygienists are hired as independent contractors,” says Koldorf. In her role, Koldorf often helps dental practices draw up such contracts. “I’ve noticed that sometimes a dental office will ask a dental hygienist if they want to be an employee or an independent contractor. But it is important to know that this classification is not really the choice of a worker or an employer. It’s a conclusion based on the conditions of the worker’s labour.” Employees may be more loyal and more likely to stay at a workplace for longer periods [...] and more likely to promote a business and create connections in their own communities that tie back to the practice. Employees are entitled to a variety of standards in employment legislation that include a minimum hourly wage, overtime pay, vacation time and vacation pay. Employees require notice of termination, severance and leaves of absence, among other entitlements. Under the Labour Relations Act, many types of employees are entitled to organize and join a union. “The law is designed to protect employees because there is a fundamental power imbalance between employees and employers,” says Koldorf. Independent contractors are not entitled to the protections and benefits of the Employment Standards Act, the Labour Relations Act or many common law protections for employees. “Instead, independent contractors are viewed as businesses themselves, which are contracting with other businesses to provide services,” says Koldorf. “The law treats them as equal to the employer.” Determining Classifications How does a court or the Canada Revenue Agency determine whether a worker is an employee or an independent contractor? “The level of control that a dental office has over the worker and their activities is a significant indicator,” says Koldorf. “Does the worker provide their own equipment? Can the person hire their own employees? What degree of financial risk is taken on by the worker in performing their services or degree of responsibility for investment and management? Does the person have an opportunity for profit in the performance of services?” Although hiring independent contractors can sometimes be a cost savings for dental practices, Koldorf says that there are also benefits to having employees. “Employees have legal obligations to the dental practice such as giving sufficient notice if they intend to leave,” she says. “As well, there is some literature that suggests that employees are more loyal and more likely to stay at a workplace for longer periods as opposed to independent contractors. They are also more likely to promote a business and create connections in their own communities that tie back to the practice.” The main benefits of being an independent contractor are flexibility and autonomy. “You can choose your hours and work at multiple dental offices if you wish,” Koldorf says. “You do your own billing and negotiate the terms of your contracts.” Independent contractors also pay their own taxes. “A business has to remit taxes for employees, but not for independent contractors,” says Koldorf. “This is where the status of worker versus contractor often arises for dental practices. If your practice is audited, you want to make sure that your independent contractors meet the criteria for that classification.” Dependent Contractors Along with employee and independent contractor, there is also a third classification called a dependent contractor. “Theseworkers arenot traditional employees, but they’re also not independent contractors,” says Koldorf. “Rather, they fall somewhere in the middle. In dental practices, workers may find themselves in a position where they may be a dependent contractor. 28 | 2023 | Issue 5 SupportingYour Practice
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