Contract Labor Definition

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    Payment

    • A contract laborer is paid a flat rate according to a contract or a bid. In contrast, employees are usually paid by the hour, or on a salaried basis.

    Tools

    • Independent, contract labor furnishes their own tools and materials to fulfill their contract. Employees are provided these things by their employer.

    Work Hours

    • Contract laborers work on their own schedule, and do not have to submit to the desires of their employer to work during certain times of the day, even though they may do so.

    Control

    • An employer may control the actions of his employees. Contract labor is left free of employer control to complete the job in the manner the laborers wish.

    Training

    • Contract labor receives no training from their employer; the laborers are expected to be fully trained before they begin work.

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