Companies often misclassify workers as “independent contractors,” when the workers are actually employees. This misclassification benefits the company and deprives workers of valuable rights. If you believe you have been misclassified as an independent contractor, it’s important to contact an experienced Employment Attorney.

WHAT IS AN INDEPENDENT CONTRACTOR?

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 clients.

WHAT IS AN EMPLOYEE?

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 and where to report to work, use company-owned 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 taxation, and the nature of the work performed.

THE IMPACT OF MISCLASSIFYING EMPLOYEES AS INDEPENDENT CONTRACTORS

If you are an employee misclassified as an independent contractor, the employer could

be depriving you of:

● Minimum wage ($16 per hour in Downstate New York and $15 in the rest of the State),  and overtime pay at the rate of time and one-half of your basic minimum hourly wage.

● Unemployment Insurance and Workers’ Compensation.

● Employee benefits, such as health insurance, PTO or a retirement plan.

● Other benefits or compensations enjoyed by those classified as employees.

Once again, if you believe you have been misclassified as an independent contractor, it’s important to contact an experienced Employment Attorney. Please contact Employment Attorney Raymond Nardo with your questions or concerns.