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Difference between independent contractors and employees

| Oct 23, 2016 | Wage And Hour Laws |

Often companies have to decide between hiring permanent employees or independent contractors to get the job done. Independent contractors cannot be considered as employees and are paid for the services they provide. However, contractors might spend several years working with a particular organization. The line between contractors and employees is very thin, and sometimes companies might exploit this fact without breaking any laws.

In today’s market, independent contractors are becoming increasingly popular, and companies have started hiring contractors on a temporary basis. This is because hiring someone as an employee gives them certain rights that the company might not be able to afford. For example, employees usually receive health and insurance benefits, but contractors do not receive these luxuries from the employer. Hiring a contractor protects employers from lawsuits related to employment law. It is important for organizations to make sure that the contractor hired does not receive employee status. There are several conditions under which a contractor might be classified as an employee.

The Fair Labor Standards Act (FSLA) determines whether a contractor can have employee status. They determine the minimum wage, overtime pay and amount of time which one has to work to receive permanent employment status. Most states have defined that employees working less than 35 hours in a week are part-time workers. Others who are hired for a limited time to do a specific job usually receive temporary employment status.

If you have been hired as a contractor or a temporary worker, it is advisable to hire an attorney to go through your contract. There might be a chance of you getting permanent employment status based on your current contract. Your attorney will assess the case and determine whether your rights are being violated by the employer.

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