Companies often misclassify workers as “independent contractors,” when the workers are actually employees. This misclassification benefits the company and deprives the worker of valuable rights. 

An independent contractor is a person, or company, that provides goods or services under a contract or agreement. The key difference between an independent contractor and an employee is the “degree of control” that the company exercises over the worker. 

In general, an independent contractor has more control over their work and is responsible for managing their own work schedule, workspace, and tools. They are typically paid a fixed fee for their work and are responsible for their own taxes and insurance. Their hours are usually not set by the company, they usually do not work on company premises, they use their own tools and equipment, and they often have multiple other clients. 

On the other hand, an employee is hired by a company to perform specific tasks and is typically subject to much greater control and direction from the employer. Employees are often directed when to report to work, where to report to work, use company tools and equipment, and receive  benefits such as health insurance, retirement plans, and paid time off. The employer is responsible for withholding and paying taxes for employees.

Thus, the classification of a worker as an independent contractor or employee is determined by the degree of control exercised by the employer, the level of independence of the worker, the method of payment, and the nature of the work performed.

If you are misclassified as an independent contractor, when you should be an employee, the employer could be depriving you of minimum wage ($15 per hour in most of New York State), and overtime pay at the rate of time and one-half of your basic minimum hourly wage. In addition, you are entitled to Unemployment Insurance, Workers’ Compensation, as an employee, and may be entitled to other employee benefits, such as health insurance or a retirement plan. 

If you believe you have been misclassified as an independent contractor, please contact Employment Attorney Raymond Nardo.