Press Releases

MOUNTAIN VIEW, Calif., September 10, 2001 — Today there are ever-increasing options for how, when and where people can perform their work. More than 20 million Americans "telecommute," or work from a remote location, typically their home, for at least part of their working time, according to a recent study by the International Telework Association and Council. In addition, many businesses are turning to outsourcing or independent contractors to handle tasks that previously were done by in-house employees. Those trends may increase, given businesses' desire for greater efficiency and the abundance of former "dot-com" workers who are now marketing themselves as freelancers or consultants.

These working options have appeal to both participating workers and businesses, including greater flexibility and reduced expenses and absenteeism. However, both workers and businesses should consider a variety of factors before utilizing telecommuting or outsourcing.

For WORKERS considering telecommuting or becoming an independent contractor, FindLaw, a popular legal web site (www.findlaw.com) offers the following tips:

• What will be my legal relationship with the company?
  Some businesses have been changing their telecommuting employees to independent contractor status.
  
  
• What are the tax implications?
  Telecommuters may have additional expenses (e.g., office supplies, computers, phone lines, etc.) that may or may not be reimbursed by their employer. Independent contractors may be responsible for their own withholding taxes. Both telecommuters and independent contractors may be able to deduct part of the expense of maintaining a home office.
  
  
• Are any benefits affected?
  If telecommuting, make sure all of your benefits are unaffected, including health care, workers comp, sick pay, overtime, etc. If you're an independent contractor, you likely will not receive any benefits, but may be eligible for certain company-subsidized perks such as parking, cafeterias, commissaries, etc.

For BUSINESSES considering shifting some employees to telecommuting, or using independent contractors, FindLaw offers the following tips:

• Check potential liabilities
  Are telecommuters or independent contractors covered under your insurance policies while they are performing work for your company?
  
  
• Determine the status of workers
  A business can file form SS-8 with the IRS and request an advance determination of whether a worker will be considered an employee or an independent contractor. The IRS has also set up what it calls "The 20 Factor Test" to provide guidance. A telecommuting employee might be considered an independent contractor under certain circumstances. In other cases, the IRS has ruled that independent contractors were actually employees of the company and entitled to employee benefits.
  
  
• Make working arrangements clear
  It may be helpful to specify working arrangements. For example, how often a worker may telecommute and how often they should work on-site. Work done by independent contractors can be spelled out in a contract.
  
  
• Understand all the costs and benefits
  There may well be "hidden" costs, as well as advantages. The benefits of having a happy, motivated workforce, thanks to the flexibility of telecommuting, may well offset the expenses involved in setting up and administering the program. Outsourcing tasks may mean greater flexibility in staffing as well as reduce the cost of employee benefits, but may also mean higher turnover and training costs.

Legal counsel can provide useful guidance on a worker's employment status and can draw up appropriate contracts that spell out each party's rights and responsibilities under the particular working arrangement. Additional helpful information can also be found at legal Web sites such as www.findlaw.com

About FindLaw

FindLaw Inc. (http://findlaw.com) the pioneer and leader in online legal information and services, is the highest-trafficked legal Web site, providing the most comprehensive set of legal resources on the Internet for lawyers, businesses and individuals. These resources include legal search tools, case law (including U.S. Supreme Court decisions dating back to 1893), legal news, real-time SEC filings, community discussion areas and online continuing legal education. FindLaw is home to the most complete online legal career center, with law firm salary charts, legal job listings, personalized legal job placement services and the "Greedy Associates" message boards. FindLaw's channels for businesses and the public provide comprehensive, plain-English legal information for non-lawyers.

About West Group

Headquartered in Eagan, Minn., West Group is the foremost provider of e-information and solutions to the U.S. legal market. West Group is a division of The Thomson Corporation (TSE: TOC) and was formed when West Publishing and Thomson Legal Publishing merged in June 1996. For more information, please visit West Group's Web site at www.westgroup.com.