Are remote distance learning faculty independent contractors?

The following blog post was generated by AI (ChatGPT) and has been reviewed by TRACS Staff for general accuracy and applicability to TRACS institutions. We posted a question and then repeatedly narrowed the focus of the question to achieve these results. 

Whether remote distance learning faculty can be classified as independent contractors depends on various factors, including the level of control the institution has over their work, the nature of their relationship with the institution, and specific contractual arrangements. Here are key considerations:

IRS Guidelines and Control

1. Behavioral Control: If the institution dictates how, when, and where the remote faculty member performs their duties (e.g., setting schedules, requiring adherence to a specific curriculum, and mandating the use of certain teaching methods or platforms), this indicates an employee relationship. Independent contractors typically have more freedom in how they complete their tasks.

2. Financial Control: Independent contractors often bear the cost of their own equipment, are paid on a per-project or per-course basis, and do not receive employee benefits. If the institution provides the tools and resources, reimburses expenses, and offers benefits, the faculty member is more likely an employee.

3. Type of Relationship: The permanency of the relationship, the presence of a written contract, and whether the work performed is a core part of the institution’s business all influence classification. Long-term or continuous relationships and work integral to the institution’s primary mission suggest an employee status.

Practical Considerations

1. Integration and Participation: If remote faculty are involved in institutional activities beyond teaching (e.g., participating in meetings, contributing to curriculum development, or engaging with other faculty), this indicates an employee relationship.

2. Compensation and Benefits: Regular salaries, health insurance, retirement plans, and other benefits are typical of employees, not independent contractors.

3. Job Security and Longevity: Long-term contracts, job security, and the potential for tenure or ongoing employment support an employee classification.

Potential for Independent Contractor Status

There are scenarios where remote distance learning faculty could be classified as independent contractors, such as:

1. Short-Term or Project-Based Engagements: Faculty hired to teach specific courses for a limited period without ongoing commitments or significant integration into the institution may qualify as independent contractors.

2. Specialized or Guest Instructors: Experts brought in for their specialized knowledge or to teach specific modules on a freelance basis with high autonomy may be considered independent contractors.

3. Minimal Institutional Control: Faculty who have significant freedom in designing their courses, setting their schedules, and using their own resources and materials might be classified as independent contractors.

Risks and Consequences

Misclassification of remote distance learning faculty as independent contractors when they should be employees can result in:

1. Legal and Financial Penalties: Institutions may face back pay, benefits, penalties, and fines from the IRS or other regulatory bodies.

2. Employee Claims: Faculty may file claims for benefits, overtime pay, and other employee rights, leading to legal disputes and potential litigation costs.

3. Reputation Damage: Misclassification issues can harm the institution’s reputation and affect faculty and student trust.

Best Practices

1. Legal Consultation: Seek advice from legal and HR experts to ensure proper classification in compliance with federal, state, and local laws.

2. Clear Contracts: Draft detailed contracts that outline the nature of the relationship, including job duties, compensation, and the level of control and independence.

3. Regular Reviews: Periodically review the classification of remote faculty to ensure compliance and adjust practices as needed.

Conclusion

While remote distance learning faculty can potentially be classified as independent contractors under certain conditions, most faculty members, due to the level of control and integration into the institution’s operations, are typically classified as employees. Careful consideration of the factors outlined above and adherence to legal guidelines are essential to determine the correct classification.