Phil Gibbons has 20 years of professional experience in labour law and a thorough knowledge of the classification requirements for independent contractors. This experience allows them to analyze employment contracts and determine whether, from the outset, your employer hired you as an independent contractor or misclassified you. Some reasons why employers misclasse workers as self-employed contractors: there are some factors that are not relevant to determining whether a working relationship exists. Facts such as the place where the work is performed, the absence of a formal employment contract or whether a so-called independent contractor is approved by the public/local government are not considered to have an influence on the existence of a employment relationship. In addition, the Supreme Court held that time or the manner of remuneration does not control the determination of the status of workers. The IRS uses a three-part analysis to determine whether a workforce is an independent employee or contractor (regardless of how the company classifies the workforce itself). It is very similar to the factors already discussed above: if you don`t have to exercise as much control over the work done, or if the work is done solely on time, you should probably hire an independent contractor. Because recruiting employees involves significant obligations under federal and national law, the use of independent contractors for short-term work allows your company to use collaborators to complete the project without incurring any tax or insurance liability, which increases costs and red tape. Basically, independent contractors are often a more effective option for contractors who can be used for temporary work or work, which can be performed with less supervision than traditional workers. Many state and federal laws are in place to protect employees across the country.
However, these laws do not apply to independent contractors. If you think your employer misclassified you as an independent contractor to avoid overtime, you may be able to take legal action against him or her to recover the compensation you deserve. If the worker is acting in a monitoring function (for example. B recruitment of workers, investments in equipment, etc.) and if his leadership qualities influence his chances of winning or lose money, he is likely not a worker or an independent contractor. If the worker has invested in the company and is at risk of loss, she may be an independent contractor. The courts compare the employee`s investment to the employer`s investment to determine whether she is in business herself. However, investment in equipment for work does not necessarily imply an independent contractor role. The staff you hire and the classification that covers them have important consequences for businesses. This article describes the differences between contractors and staff and explains the pros and cons of recruitment.
Independent contractor laws are complex, but an independent lawyer who rehabilitates Charlotte at Gibbons Leis, PLLC, misclassification can help. Call today: 704-612-0038. Under the Fair Labor Standards Act (FLSA), there are certain conditions that distinguish a contractor from an employee. These are the factors used by employers to determine whether a worker should be considered a salaried worker or as an independent contractor. Many of these factors are related to the relationship between the employee and the employer. Among the factors, independent contractors are more likely to exercise their own judgment and use their skills to work independently.
