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LSDefine
Simple English definitions for legal terms
contract labor
Read a random definition: Federal Unemployment Tax Act (FUTA)
A quick definition of contract labor:
Contract labor refers to workers who are hired by a company for a specific job or project, but are not considered employees. They are often referred to as independent contractors and are responsible for their own taxes and benefits. Contract labor is different from regular employees because they are not entitled to the same benefits and protections under the law.
A more thorough explanation:
CONTRACT LABOR
Contract labor refers to a type of employment where a worker is hired for a specific job or project, usually for a limited period of time. The worker is not considered an employee of the company, but rather an independent contractor.
- A construction company hires a plumber to work on a project for three months.
- A software company hires a freelance developer to create a new app.
These examples illustrate contract labor because the workers are hired for a specific job or project, and are not considered employees of the company. They are responsible for their own taxes and benefits, and are usually paid on a per-project or hourly basis.