Misclassification of employees as independent contractors is a growing problem in California. As a result, workers who should be classified as employees are missing out on critical benefits, fair wages, overtime compensation, medical leave, or even safe workplaces. If you are the victim of employee misclassification, our law firm can help. Robinson Bradford LLP offers legal services for clients who have been misclassified by their employers and have lost pay or benefits as a result. Contact our law firm today to get a free case review from an employee misclassification lawyer in Stockton, California.
Employee vs. Independent Contractor: What Is the Difference?
According to the Internal Revenue Service, an individual is an independent contractor if the contracting company has control over the result of the completed work but not what will be done or how it will be done. This is a vague description, so let's look a little closer:
An individual is an employee if the employer or business directs and controls the scope of the work that the employee performs. The employer also has the right to control the financial details of the worker's position, including pay. In a nutshell, the employer tells the employee what to do, how to do it, and how much they are going to pay them for it.
As a result of the agreement between the employer and the employee, the company often pays certain benefits to the employee. They are also responsible for paying certain types of employee taxes. The amount of flexibility or autonomy the employee has is based on the overall infrastructure of the company.
An Independent Contractor
A person is an independent contractor if they have complete autonomy over how they perform a job and control over what will be done. All the payor cares about is the finished product. The company cannot tell the contractor when to work, how to work, or any other aspects of the job. Their only concern is honoring the agreement between both parties.
Since no rules are governing the contractor, they have the flexibility or freedom to perform the task as they see fit. An independent contractor may not ask for exclusive benefits, medical leave, or any other privileges that an employee would have access to. Also, they cannot control what the company is willing to pay for a job. They can simply agree to a contract or turn it down.