The way your employer classifies you as a worker can impact you in various ways. It could affect the benefits for which you are eligible and the protections you have as a worker. At the Law Offices of Kell A. Simon, we want to ensure your employer does not violate your rights with a misclassification.
The two classification options your employer has are employee or independent contractor. The law strictly dictates when an employer can consider you an independent contractor.
Employee status
Employee status provides you far more protection under the law. You have less control over your work, though. Your employer can dictate what hours you must work and how you must do your work. However, you qualify for benefits, such as health insurance, workers’ compensation and unemployment.
Independent contractor status
As an independent contractor, you have more freedom in your workday. You can choose when you want to work and how you do your work as long as you deliver the results you agreed upon with the employer. You will usually work under a contract.
This status does not provide you with protection under the law. Your employer does not have to pay you minimum wage or overtime. You also do not qualify for any benefits and have to pay your own self-employment taxes.
Misclassification
An employer may intentionally misclassify you to save money. It will not have to pay the employer portion of taxes if you are an independent contractor. In addition, there are savings on benefits and pay. However, employers that do this still exert control over you as if you are an employee, which is a violation of the law.
To find out more about how a misclassification in your worker status could affect you, visit our website.