File this one under “unfortunate results from well-meaning legislation” (A.K.A. unintended consequences). I don’t actually have a file for such things, but I do notice them when I see them – and this article from the Frederick News-Post about Maryland redefining what constitutes and employee and what constitutes an independent contractor definitely makes the cut.

The gist of the article is as follows: The state of Maryland is concerned that some businesses are unfairly qualifying their employees as independent contractors to avoid certain expenses. So they are tightening up the definition of “employee.” And, in the process, they’re making more than a few small businesses nervous that they’ll either have to close their doors or stop doing business with certain individuals. Why? Because the additional expenses incurred by classifying these people as employees would put them out of business.

Speaking as an independent contractor, I must admit there are certain things that aren’t optimal about the arrangement. I don’t get health benefits or paid time off. I owe both the individual share of my taxes along with the share normally covered by an employer. And I don’t have the same job security enjoyed by most employees. So I can understand the state wanting to “protect” me.

But I also must admit that there’s some really great things about working as an independent contractor. I have incredible flexibility in my schedule. I am free to work for as many companies as I choose. And I have the option of paying into whatever health or savings plans that I want. It is precisely because I care about this freedom that I choose to be an independent contractor.

Some of the companies that I work for (there are several current employers listed on my LinkedIn profile) would never be able to afford an extra employee – even a part-time one. But they can afford to pay a contractor a lump sum for completing a project. Forcing these businesses to classify me as an employee would effectively price me out of a job. It wouldn’t make my earnings go up at all!

This happens all-too-often with well-meaning legislation of all kinds, be it humanitarian, environmental, or anything else. We try to solve one problem, but we only end up creating several others. And it is precisely for that reason that the Maryland Public Policy Institute stands for limited government and free enterprise. As do I.