This post will identify the differences between employees and contractors and explain why proper classification is important.
What is a contractor?
A contractor is someone who provides services to a company on a temporary basis, usually until a specific job or task is complete. Contractors do not work for the company, therefore, the company is not allowed to control the way in which work is performed. For instance, a company cannot tell a contractor when to start work, what tools/equipment to use, or the order in which the work must be done.
Think about a plumber who comes to fix a homeowner’s broken sink. The homeowner does not supervise or control the plumber’s work. That is an example of a contractor.
What is an employee?
An employee is someone who is under the direct control and supervision of the employer. Generally, employees are required to arrive to work at a specific time and complete tasks provided by the employer. In this situation, the employer can control what will be done and how it will be done.
Why is proper classification important?
Proper classification is important because contractors are not protected under any employment laws, including discrimination laws and overtime laws. As you can guess, employers will often improperly classify employees as contractors in order to avoid paying taxes, overtime or minimum wage.
If you feel that you are improperly classified, or may have been improperly classified in the past, call Lee Law for a free case evaluation.