Legal Question in Employment Law in Indiana

Re: Hostile work environment.

First of all, I'm not sure what you mean by "hostile environment," so it's difficult to use those words to any response here. That phrase has legally significant meaning in the federal context, but I'm not sure if that is what you mean. I do know that if in fact, he is creating a "hostile environment" and you know about it, your company may be on the hook, legally. You do have to protect your employees and if you control the work, you're going to be deemed to have the duty to take care of the situation.

As to getting rid of an independent contractor, that is something that is typically governed by a contract. If he's doing something that can be construed as a breach of the contract, that may be grounds to send him packing.

This question is nearly impossible for a lawyer to answer online since there are way too many variables. You should contact a lawyer and sit down for half an hour or so and discuss it. In the long run, it might be the cheaper course.