Contractor Health and Safety

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Welcome to Contractor Health & Safety: Protecting your rights during contract work.

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Introduction

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The health and safety of contract workers is often overlooked. At the conclusion of the training course, you will be able to define contract work, identify the characteristics that differentiate between a Contractor and Employee, understand how health & safety laws impact contract work, and successfully negotiate a contract to protect your health & safety on the job.

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During this course, you will move through four modules. Module 1 will discuss the differences between Contractors and Employees, Module 2 will cover health & safety laws and discuss how they differ between Contractors and Employees, Module 3 will cover the basics for negotiating and creating a successful contract, and Module 4 will discuss common safety hazards and steps to protect your health and safety on the job.

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Module 1 – Contractors versus Employees

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Even though Contractors and Employees both have the right to a safe work place, but have slightly different protections under the law.

This module will cover the differences between Contractors and Employees so that Contractors are able to protect themselves while working on a job.


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A Contractor is an individual who completes work for someone else, but is not an employee. Contractors define the terms of their work clearly a legal document – a contract. The Contractor is selling a product, their work, to their Clients, and the contract is a detailed record of what the Client is purchasing, and for what price. According to the legal definition of Independent Contractor, the Contractor is free to determine when, where, and how they produce their product.

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An Employee is paid a flat rate salary or hourly wage at regular intervals by an Employer in exchange for consistent work at scheduled times. They are usually asked to complete a variety of tasks, and may only be provided with a general description of their job.

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Contractors can work in just about any field. Contract based work is commonly used for skilled laborers, such as welders, construction workers, plumbers, painters, electricians, and so on.

Artists, Writers, and Editors often work as Contractors, and business professionals, teachers, and even medical professionals can work under temporary contracts to fill in for regular employees.

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The first step to navigating contract work is to understand the difference between Contractors and Employees. It may seem like the classification would not particularly matter as long as the job is completed, but it can affect how tax, safety, and benefits laws affect the working partnership. Before finalizing a contract, all parties involved should clearly understand whether the contract is for Employment or Contract Work.

Contractor_M1_S7 Determining whether the project is best suited for a Contractor or Employee can prevent conflict and tension during the working process. Discussing these important factors to contract work can ensure a smooth working relationship from the beginning.

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Generally speaking, Employers are responsible for keeping track of and filing tax forms, health insurance paperwork, and maintaining financial records of pay, including pay stubs and appropriate tax forms. Employers pay their Employees a set or hourly amount on a set schedule, usually biweekly or monthly, and miscellaneous expenses for business travel or relocation may be reimbursed.

Contractors, on the other hand, maintain all of their records themselves, and are responsible for their own tax withholdings and filings. Contractors send their Clients an Invoice, or bill, either when the project is completed or at specific intervals set in their contract. Contractors are typically responsible for all of their own expenses related to their work or work travel.

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While Contractors welcome input from their clients, they will remain relatively in control of when, where, and how the work is completed, and will provide their own work staff. The Contractor is able to work anywhere that they choose that can accommodate their work, from their home office to the beach front. They will usually have the autonomy to make minor or even major changes to a project, through they will usually discuss changes with the Client before hand.

An Employer will give Employees some autonomy in the work process, but will maintain overall control of the Employee’s scheduled hours at a set work location, and how and with whom the Employee will work.


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If the individual holds specialized licenses to do specific types of work, such as those held by electricians or plumbers, they are more likely to be considered an Independent Contractor.  Contractors are responsible for maintaining their own professional licenses, and will usually include the necessary work permits and associated costs in their bid for the project.

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Employers usually have very specific standards regarding how a task should be completed, which usually means that Employees will requir training to be successful. Employers may or may not provide support for continuing education, but will help Employees to learn new job-specific skills.

A Contractor is hired for their existing expertise, and should require minimal training to understand what their Client is looking for in the project. A Contractor often has specialized training already, and is responsible for their own ongoing education and for learning new skills.

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An Employer will supervise their Employees throughout their work shift, checking in if their training and instructions are followed. Since Contractors operate autonomously, they do not need supervision, but will provide regular progress checks and may separate larger projects into smaller chunks to be reviewed as they go.

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Let’s consider this scenario. A construction company manager realizes that they are short staffed and unable to meet a project deadline without hiring extra workers. The manager brings in Mike to help finish a project, and Mike brings three helpers and special tools to use on the job. The manager tells Mike to “just do what you do and help us finish up”. Is Mike a Contractor or an Employee?

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Mike is a Contractor, bringing specialized knowledge, skills, abilities, and tools to help him complete a job he holds autonomous control over.

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Now let’s look at another scenario. A local retail chain hires Tim to work in their store during the winter holiday rush. Tim is required to work the afternoon shift five days a week, to report to a shift manager, and to follow specific instructions to complete work tasks. He is told that his position is currently only for the winter holiday season, but has the potential to be continued if he does well. Is Tim a Contractor or Employee?

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While Tim has been told that this job may only be temporary, he is an Employee. He works specific hours, on specific days, reports to a manager, and follows instructions for how to complete his work tasks.

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In this module, you have learned the definitions of an Employee and a Contractor, and the FACTS you can use to tell the difference.

Lets follow up with a short quiz

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Module 2 – Health & Safety Laws in the United States and Canada

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Everyone is entitled to a safe and healthy workplace. In this module, you will learn about the major health and safety laws protecting workers in the United States and Canada. Knowing the regional and national health and safety laws and how they work can help Contractors and Employees to protect their safety in the workplace.


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While the majority of the OSHA Act of 1971 regulations do not apply to Independent Contractors, there is some coverage extended to these workers. The General Duty Clause states that all Employers must provide a safe work environment free of hazards that can lead to death or serious injury, and report any injuries or fatalities within 8 hours. Employers must also provide well-maintained tools and equipment, and provide all needed training and safety gear.

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The Fair Labor Standards Act regulates the minimum wage and overtime pay requirements for employees. The Fair Labor Standards Act does not apply to contract workers – pay and overtime regulations must be outlined in the contract.

However, If an individual believes that they have been working as a Contractor when they should have been paid as an Employee, they may be eligible to claim lost wages and overtime pay.

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Worker’s Compensation Laws require Employers to pay for treatment for and lost work time due to work-related injuries or illness.

These laws vary by state, and generally do not apply to Independent Contractors, unless they can prove they were misclassified and in fact meet the legal definition of an Employee.

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Many states use “Particular Risk Doctrines”, which state that Employers are not responsible for injuries to or damages caused by Independent Contractors, unless the Employer hired the Contractor to perform “inherently dangerous work” and failed to specify precautions or safety regulations, or specified the regulations but failed to enforce them.


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Adverse Impact occurs when there is a significantly different rate of hiring, promoting, or employing a specific protected class. Disparate Impact occurs when the hiring procedures appear to be fair, but unintentionally discriminate. Disparate Treatment occurs when the hiring process is intentionally biased against a specific group.

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The protection of the Adverse Impact laws extends to Independent Contractors. Adverse Impact laws protect individuals from discrimination and harassment due to membership in a protected class. This includes ones race, disability, sex, pregnancy or familial status, age, citizenship, or status as a military veteran.

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The Uniform Guidelines apply to organizations with at least 15 employees, and specifically prohibits the use of selection methods that lead to adverse impact. The Uniform Guidelines require all testing or selection tests to be validated and to pass the Four-Fifths Rule, which states that 4/5ths (or 80%) of applicants in protected classes must be able to pass the test successfully.

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The Canadian Health & Safety codes were developed around the belief that all workers deserve a safe and healthy work environment. Contract Workers and Employees in Canada are protected under Federal and Provincial Canadian Labour Codes that are specific to each work sector. The Canadian Centre for Occupational Health & Safety (CCOHS) was created in 1978 to help enforce these regulations, and provides resources to employers and employees to help promote safety at work.

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The first part of the Canadian Labour Codes regulates interactions between employers and employees. This section regulates bargaining strategies, dispute resolutions, unions, strokes & lockouts. The goal of the Labor Relations Board is to ensure all parties are free to join trade unions, to foster harmonious relationship and negotiate good faith agreements, and to ensure strikes, lockouts, and work stoppages do not present an immediate or serious danger to the health and safety of the public.

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The second part of the Canadian Labour Codes lays out 45 Duties that employers are expected to follow. Employers are expected to take all reasonable and necessary precautions to ensure the health and safety of the employee and others, and allows employees to refuse to use equipment or perform tasks that they have reasonable cause to believe constitutes a danger to themselves or others. These laws specifically extend to contract and temporary workers.

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The third part of the Canadian Labour Codes lays out the terms and conditions of employment. This section establishes the 8 hour workday and 40 hour workweek guidelines, though exceptions are allowed, and states that employers are required to provide at least one full day off per week. This portion of the codes also sets the minimum wage, and outlines regulations for time off, holidays, and parental leave, and provides protection against sexual harassment in the workplace.

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Both the United States and Canada have laws protecting the health and safety of all workers. What do the OSHA General Duty Clause and the Canadian Labour Codes Part Two: Occupational Health & Safety say every employer has to do?

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US & Canadian laws collectively require Employers to provide safe, sanitary and working facilities, to maintain tools and safety equipment, and to teach workers how to operate safely. Employers must remove any known hazards, and report any serious hazards and all injuries to the appropriate regulatory agency.

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Full-time employees are able to receive several benefits under the law, including receiving a minimum wage, overtime pay, sick leave, paid time off, and even health insurance coverage.  Are there any laws protect wages, overtime, sick leave, or healthcare benefits for Contractors?

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There are no national laws covering wages, overtime, sick leave, or healthcare benefits for Contractors, unless the Contractor can prove they were forced to work as an Employee. If they can, they may be able to file a claim for lost benefits.

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In this module, you learned about the various health and safety laws that protect workers in the United States and Canada, and what rights they guarantee for Contractors.

Lets follow up with a short quiz

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Module 3: Negotiating a Contract

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Negotiating  a contract can be a difficult process. Asking key questions can help contractors protect their safety on the job. In this module you will learn how to negotiate a contract an red flags to watch for to protect your safety on the job.

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Many contract work positions begin with a request for proposals or bids. This may be a direct request from the Client to the Contractor, or may be a public advertisement, job advertisement, or  that the Contractor chooses to respond to.

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When reviewing the initial request or advertisement, there are several red flags that Contractors should remain aware of. If a potential client sends a proposal that sounds like it would be dangerous, the Contractor must use their best judgment as to whether they can protect their safety on the job before deciding to bid. If the Client does not specify the safety precautions taken,
provides only the vaguest descriptions of the work, or includes extra tasks that are outside of the norm for that type of work, the Contractor should be concerned. A Concrete specialist shouldn’t be asked to do “some electric work”, and so on.

It should also be concerning if the task descriptions involve requests for specific hours and days worked, or significantly undervalues the market value for the work. If they seem to be looking for the cheapest way to hire an employee, it is a sign they may skimp on other areas as well – including safety!

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All contract work should start with an opportunity to discuss the project. Meetings can be conducted in person, over the phone, or for the technologically include, through email, chat, or video phone conference. Prior to these meetings, the Contractor should carefully read through the details of the proposal request and develop a list of questions to lead discussions, and attend the meeting alert and prepared to take notes and discussion the project.

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At the end of the meeting, the Contractor should have a good understanding of the details of the project that will impact timelines and costs, and be able to envision what the client is hoping the end product will look like. During the discussions, the Contractor should be sure to bring up any concerns they have regarding the safety of the project, and ensure a plan is in place to reduce hazards and prevent injuries.

Many Contractors also choose to send e-mail follow-ups to these discussions, as this provides an easy reference point should questions arise in the future.

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During meetings, Contractors should be sure to discuss how safety will be monitored on the job. It is important to note who will be responsible for providing safety equipment, who will maintain the equipment, and who will provide any necessary safety training. The Contractor should also take the time to research applicable safety regulations for the type of work being discussed to ensure they are able protected on the job.

By the end of the discussion, the Contractor and Client should have a clear understanding of their safety responsibilities, and be ready and willing to work together to remove hazards and protect the safety of the Contractor.

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During the initial meetings, Contractors should be aware of a few key behaviors that are signs they should walk away now. While it is normal to request work samples and resumes, Clients should never ask for free work on the new project as a condition of hiring, nor should they ask for discounts now on the promise of “opportunities for more work later”. It should also be concerning if the Client seems to have difficulty describing exactly what it is they are hoping to purchase, seems to have unreasonable expectations, or advertises one type of work and then requests tasks outside of the Contractors’ normal field. This may be a sign that the individual is just naive, or it may be the sign that the potential Client wants to leave room to complain and ask for discounts later on.

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Of course, the biggest red flags in Contract work are requests to engage in unethical or illegal activities, or insistence that the Contractor engage in unsafe work. If the potential Client seems dismissive of safety concerns or refuses to discuss or include safety precautions in the contract, the Contractor should immediately terminate the working relationship and move on to other projects. If the Client repeatedly asks for illegal activities, such as work descriptions that blatantly violate safety regulations, or admits that they know it is wrong but that they’ve been doing it that way for some time, Contractors should consider reporting the Client to the appropriate regulatory agency.

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Once the Contractor decides that they would like to work with a Client on a given project, they should be prepared to send a proposal of terms before completing the full contract. This proposal can be in the form of an initial contract, but many Clients prefer a less formally phrased document to be sent first. This should include a detailed description of each phase of the work process, details covering the final product, an estimate of the amount of time it will take to complete the work, and an itemized lists of the estimated costs.

Of course, this initial proposal should also include language that details how the Client and Contractor will work together to ensure safety during the work.

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Contractors should be prepared for the majority of proposals to enter a Negotiations stage as terms are set. Contractors should try to be flexible, but watch out for red flags that tell them to walk away. Counter-offers that are well below the market value for the work or less than 50% of the original quote, that insist on adding work without raising pay, or that want to add unreasonable loopholes that could allow the Client to get out of paying for the work are all examples of scope creep that can put a lot of stress on a Contractor. If the Client appears to be engaging in scope creep, if they remove language protecting the contractors’ health and safety, or ask to continue the project without a contract at all, the Contractor should walk away.

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Once the Client and Contractor are able to settle on the final terms of the project, the Contract can be developed. There are a number of types of contracts that can be used, and the nature of the work will determine which is the most appropriate for a given project.

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The most commonly used contract is the Indefinite Contract, which specifies the type of work to be completed, the estimated time frame for the work to be done, and the terms of payment.

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The second most commonly used type of contract is a Fixed Term contract. These contracts outline the details of the work that is to be done, the specific dates and number of hours that the Contractor will work, and the terms of pay for the project. These contracts are often used for Contractors providing services for specific events or short term project.

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Zero hour contracts are used for “on call” or “as needed” work. These contracts are used to guarantee that a contractor can be contacted for support when needed, but typically include clauses that give the contractor the right of first refusal. That is, the contractor must be the first contractor contacted when work is available, but they are not required to accept the work if they are unable or uninterested in completing the work.


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Team Agreement contracts are often used to clarify roles and expectations when more than one contractor is used for a project. Team Agreements are typically used alongside the primary contracts for each member of the project team.

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A Material Transfer agreement is used when the nature of the work is primarily based on research, and specifies the terms of transfer for research materials. Material Transfer agreements are most often used by Contractors engaged in academic, marketing, and legal work, and include information regarding research goals, materials and sources used, and the intended use of the research knowledge. For projects where research involves a tangible product that will later be sold, these contracts should detail who has rights to the final product and whether it the results can be sold for profit.

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Non-disclosure agreements, also known as confidentiality agreements, are often attached to contracts. These clauses protect confidential materials, knowledge, and personal information involved in projects by prohibiting the Contractor and Client from discussing details with others. If the Client wants to include a Non-Disclosure cause with language preventing the Contractor from disclosing working conditions, reporting safety concerns, or seeking assistance with training, Contractors should not continue with the project.

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Non-Compete agreements are often included in employment agreements, and prevent the employee from entering into similar working contracts in addition to their current job, or from working in similar positions or with a competing company for a certain amount of time after leaving the position. For Contractors, Non-Compete agreements are acceptable to include in contracts if they specify that it is only for the project duration. If the Non-Compete clause states that it continues for a number of months or years after project completion, this will affect the Contractors’ legal rights to work, and should not be accepted as a part of the contract.

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Once the appropriate type of contract is determined, the Contractor can develop the written contract. This should include the standard detailed descriptions of the final project, specific milestones to be achieved, the timeline for the project, and the terms of payment.

Most importantly, the contract should detail the precautions needed for the Contractor to complete the project safely, including the provision and maintenance of personal protective equipment, work tools, and any training necessary to complete the job safely.

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Let’s consider a short scenario. Sally the Contractor has been asked to fill in at an office by a temp agency she is working for. The office manager wants Sally to complete some paperwork that has been piling up and work in the office during normal business hours until the work is done. What points should Sally be sure to discuss with the office manager and include in the contract for the job?

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Sally should make sure that the contract addresses Sally’s work hours, schedule, and right to choose her work time, whether or not the office manager will provide training, and the specific conditions that will mark the project as complete.

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During Sally’s discussions with the office manager, it is revealed that Sally will be expected to work from 9am to 5pm, will be provided with a half-hour lunch break, and expected to be in the office 5 days per week. The office manager also says that he will determine when the paperwork is considered “caught up”, and that he will let Sally know when the time comes. He also tells Sally that he can only pay her minimum wage, despite having quoted the temp agency $3 more per hour.

Should Sally still take this job?

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Sally should not take this job.

The office manager used “red flag” techniques and is clearly looking for an Employee.

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In this module, you learned about different contract types, the five stages for negotiating and developing a contract, what information to include in the final document, and some common red flags to watch out for to ensure your health and safety are protected.

Lets follow up with a short quiz

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Module 4: Safety on the Job

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Contractors should keep an eye out for obvious safety hazards on the job, and should be confident in their knowledge of health and safety regulations.

In this module, you will learn about common safety hazards on the job and the steps you can take to correct or report serious violations.

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There are many types of safety hazards that may be encountered by Employees and Contractors alike. It is important for Contractors to remain aware of these hazards and protect their safety as they work.

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When entering the work site, Contractors should look to make sure an easy path to an exit is in place in the event of a fire, and should ask the Client whether working fire alarms and smoke detectors are in place. Contractors should also take note of loose rugs, cords, or other objects on the floor that could pose a trip hazard, and be wary of working in cramped or cluttered spaces where stacked objects may fall.

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It may not be the first thing that comes to mind, but Contractors must also be aware of potential psychosocial safety hazards on a job. If the Client attempts to add extra work tasks outside of the original contract, insists that the Contractor must work faster than the milestone deadlines in the contract, or continually pressures the Contractor to take on more responsibilities without extra pay, the Contractor should be wary of continuing on the project. Furthermore, if the Client or others on the work site begin to use belittling language, engage in bullying tactics, or attempt to socially isolate the Contractor from the work team, the Contractor should immediately walk out.

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Chemical safety hazards can exist even on work sites that are not dedicated to work related to chemicals. If cleaners, solvents, paint supplies, or other chemicals stored in unlabeled containers or near food, Contractors should be wary of their safety on the work site. Furthermore, if anyone is mixing chemicals together without following explicit packaging directions, or attempts to mix bleach and ammonia or anther cleaner together, Contractors should immediately vacate the premises and strongly encourage others to do so as well. Finally, if the Contractor is asked to work in an older building and notices any exposed insulation in the walls or ceiling, they should be sure to ask the Client if the worksite is asbestos free, and should leave if it is not.

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Since Contractors generally don’t get sick leave, paid time off, or health insurance benefits, they should be particularly aware of the potential risks of biological safety hazards. Unless the Contractor is specifically hired to clean up biological contaminants, they should never be forced to come into contact with or to clean up blood, vomit, urine, feces, or any other bodily fluid. If someone on the work team is obviously sick, the Contractor should work as far away from that individual as possible, wash their hands frequently and excuse themselves if the sick person has anything more serious than the common cold.

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Since ergonomic injuries can develop gradually over time, Contractors should be aware of potential ergonomic safety hazards when working. Long-term exposure to vibrations can cause nerve damage, loss of grip strength, and cysts in joints, and even single exposures to loud noises can cause permanent hearing damage and ringing in the ears. Improper arrangement of computer workstations or equipment setups, heavy lifting, and repetitive motions can all lead to muscle, back, and joint injuries, and poor lighting can lead to injuries, eyestrain, and vision loss. Contractors should be aware of these issues, and change their work stations or ask that Clients make modifications to prevent these injuries

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Contractors often work in highly specialized fields, and many of these come with their own unique set of safety hazards. Contractors can protect their health and safety by knowing their field, knowing the safety regulations that apply to their job, and taking steps to ensure they are using the right tools and the right personal protective equipment.


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If a Contractor notices a safety hazard, the first thing they should do is stop and evaluate the situation. If the hazard is relatively mild, like a rolled up edge of a throw rug or extension cord posing a trip hazard, they can use their best judgment and move the object.  If the hazard could lead to a serious injury or has the potential to be life-threatening, the Contractor should stop work, and encourage others around them to also stop work and leave the area until the hazard is removed.

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Once the Contractor notices a safety hazard on a work site, it should be brought to the attention of the Client immediately. The Client should be open to discussing how to go about removing the hazard, which may be as simple as rearranging the workstation, upgrading equipment, or using additional personal protection equipment. However, some safety hazards require specialized attention, including exposed electrical wires, chemical spills, infectious bodily fluids, or malfunctioning equipment.

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While no Contractor wants to report a client to a regulatory agency, their health and safety should always come before a client relationship. Contractors should contact the appropriate regulatory agency if a Client specifically insists that the Contractor engages in unsafe behaviors, refuses to remove or mediate a safety hazard, insist that the Contractor should remove a serious hazard outside of their realm of expertise, or threatens to withhold payment if the Contractor “complains” or refuses to work in unsafe conditions. All of these are warning signs that the Contractor should immediately walk away from the Contract, and report the Client to protect others.

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When a Contractor in the US finds themselves working with a Client who refuses to mediate a safety hazard or a workplace injury, they should report the situation to the local office of the Occupational Safety and Health Administration (OSHA). The Contractor should also report the situation to their professional organizations or union to help protect the safety of other workers.

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When a Contractor in Canada finds themselves working with a Client who refuses to mediate a safety hazard or a workplace injury, they should report the situation to the local office of the Canadian Centre for Occupational Health & Safety (CCOHS). The Contractor should also report the situation to their professional organizations or union to help protect the safety of other workers.

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You are now ready for a short quiz over Module 4. Let’s consider the following scenario. Tim’s friend works at Santa’s Workshop and Reindeer Extravaganza at the local mall, and tells Tim that they are hiring Seasonal Elves as temporary contract workers. Tim loves to work with kids, and eagerly requests to speak to a Senior Elf about the opportunity. He is told that the job pays above minimum wage, that he can chose from available shifts, allowing him to set his own schedule, and that he would be doing a variety of “Santa’s Helper” tasks. What other questions should Tim ask to ensure his safety?

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Tim should be sure to ask the Senior Elf how much he will be paid per hour, when he will be paid, and whether or not he will receive any additional benefits. He should also ask for a description of the specific tasks he will be expected to do, what steps are taken to ensure the safety of the Elves, and what conditions will end his contract.

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Tim starts his first day as a Seasonal Elf at Santa’s Workshop and Reindeer Extravaganza at the local mall. Tim eagerly dresses up in his costume, and reports to his shift manager, who directs him to restocking the shelves. In order to do this, he says that Tim must carry boxes of candy canes that weigh more than 75 pounds from the back room to various locations around the store. He asked if there was a dolly, cart, or other piece of equipment available to help move the boxes, and was told no. Is this a health and safety hazard?

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Yes, this is a health and safety hazard! Lifting and carrying a heavy box can cause back and muscle injuries, and it is illegal to deny employees equipment needed to move heavy objects safely.

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Now that Tim has decided that lifting and carrying 75 pound boxes of candy canes back and forth all day is a safety hazard, what should Tim do to protect his health and safety?

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Tim should talk to his Senior Elf about the risk of injury from heavy lifting. If the Senior Elf won’t change the policy or provide equipment to transport heavy objects, Tim should go to the Senior Elf’s supervisor, Mr. S. Clause, the Workshop owner. If Mr. S. Clause still refuses to change the policy or provide equipment, Tim should quit and report the Workshop to the local health & safety agency.

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In this module, you learned about common safety hazards to watch out for, the steps to take to correct a safety hazard, and how to report Clients who refuse to provide a safe work environment.

Lets follow up with a short quiz

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Course Summary

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You should now be able to define contract work. Identify the characteristics that differentiate between a contractor and employee. Understand health and safety laws that impact contract work. Successfully create and negotiate a contact to protect your health and safety on the job.

Let’s move onto the final quiz.

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Congratulations! You have successfully completed Contractor Health and safety. Thank you for your attention. We hoped you will use what you learned to stay safe on the job.