Sham contracting is engaging or proposing to engage an individual under a contract for services (independent contractor) where it is an employment relationship (employee). 

Code covered entities must not engage in sham contracting.

Sham contracting is engaging or proposing to engage an individual under a contract for services (independent contractor) where it is an employment relationship (employee). The employment relationship cannot be misrepresented by engaging a worker as an independent contractor when it is actually characterised as that of employment.

Code covered entities must not engage in sham contracting.