What Factors Can Indicate Independent Contractor Misclassification?

A male construction worker spreading concrete

Know Your Rights

Are you an employee or an independent contractor? It's a question that many workers don't think about until it becomes important. Unfortunately, employers sometimes misclassify their employees as independent contractors to avoid paying certain benefits and taxes. Knowing the signs of misclassification can help protect your rights as a worker and ensure you are properly compensated for your work. In this article, we will discuss some common indicators of employer misclassification so you can make sure your employer is not taking advantage of you.

Employer Control

When determining if you are an employee or an independent contractor, the level of control your employer has over you is a significant indicator. Employees are typically subject to their employers' instructions regarding when, where, and how to perform their job. On the other hand, independent contractors are free to set their own hours, choose their own workspace, and decide how to complete tasks.

Financial Control

Another important factor in determining your employment status is financial control. If you are an employee, your employer usually controls how you get compensated for work by dictating payment schedules, providing materials and supplies, or offering bonuses or commissions. However, these financial arrangements are not typically part of the job for independent contractors.

The Necessity of Worker to Profit

The relationship between you and your employer is also vital in determining whether or not you are an employee. Employees are essential to their employers' profits and success, while independent contractors can be replaced if necessary. If your work is critical for the business to continue operating, then it is likely that you are an employee and not an independent contractor.

Worker Investment

Investing in materials and tools does not determine whether someone is an independent contractor or employee; instead, investment refers to someone putting capital into an independent business or business-like structure. You are most likely an employee if you have invested little or nothing into the company.

Length of Work Relationship

Employers are also more likely to misclassify you as an independent contractor if your work relationship is short-term. This allows them to avoid providing benefits such as health insurance and workers' compensation that they would otherwise be required to offer to employees. On the other hand, longer employment relationships are typically seen as a sign of employee status.

Work With Unpaid Wage Attorneys

If you suspect your employer has misclassified you as an independent contractor, it's crucial to take action immediately. Contact the nationwide unpaid wage attorneys at Josephson Dunlap to recover the wages you are owed. We are the lawyers for the workers®, and we will fight for your rights.

Learn more about how we can help with your misclassification case or schedule a free consultation by calling (888) 742-7242 or visiting our website.

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