Many employers, both public and private, make extensive use of contrac
t, contingent, and temporary employees. In a difficult economic enviro
nment, the flexibility and reduced costs associated with contract empl
oyees make their use especially attractive. Despite the widespread use
of contract employees, a clear understanding of the legal implication
s of their use is not as widespread. From a number of standpoints, inc
luding employment discrimination law and labor law, the use, or perhap
s better stated, misuse, of contract workers raises serious legal risk
s for the unwary employer. This article describes and explains the nat
ure of these risks and offers practical recommendations to help employ
ers maximize the benefits and reduce the legal risks related to contra
ct employees.