Many persons are incorrectly and illegally classified as “independent contractors” by their employers. Certain employers classify their employees as independent contractors to avoid paying employees minimum wage, overtime pay and other benefits, including workers’ compensation benefits, unemployment insurance benefits, vacation pay, holiday pay and health insurance. Just because your employer does not withhold payroll taxes from your wages, or issues you a Form 1099 instead of a Form W-2 for tax purposes, it does not mean that you are properly considered an independent contractor. Courts look at several factors to determine whether an employee has been wrongfully classified as an independent contractor. Some of these factors are:
- Whether the employer controls or has the right to control your work, when you perform your work, and the manner and method in which you perform the work.
- Whether the working relationship is permanent.
- The degree of skill required to perform the work.
- The degree to which your services are an integral part of the business.
Some industries that have misclassified employees as independent contractors include cable television installation companies, janitorial companies and contractors, and construction companies.
If you have been classified as an independent contractor, please contact Werman Salas P.C., to discuss whether you are entitled to employment benefits, including overtime pay.