So many businesses rely on independent contractors to provide services to their customers. Home improvement contractors quickly come to mind. Businesses realize many benefits from using independent contractors, rather than employees. Not having to pay unemployment tax for the independent contractors is one huge benefit, and unemployment claims are usually when a business gets into trouble in this area.
Yes, there is, but not when compared to the loyalty of a pet. So what can you do if you discover a seriously disloyal employee? Even if you do not have a written agreement with the employee such as a non-compete agreement or non-solicit agreement (you can read up on these here), you can still protect your business from an employee that competes with you behind your back.