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W
hether a company is a start-up, in growth mode, or looking to hire out-of-state workers, it may face a dilemma about whether to bring on a new worker as an employee or an independent contractor. That distinction is important because independent contractors don’t receive overtime pay or unemployment benefits, aren’t covered by the company’s workers’ compensation insurance, and are fully responsible for paying taxes. They generally aren’t protected by antidiscrimination and other laws either. In most cases, the appropriate choice is to hire the worker as a W-2 employee. But for many reasons—maybe because the worker wants more flexibility or