One of the most common ways employers take advantage of workers is misclassifing them as “independent contractors” or “1099 contractors” rather than employees. By misclassifying these workers as independent contractors, employers avoid paying certain expenses, including insurance, worker compensation benefits, taxes, and overtime pay.
Independent contractors vs. employees
An “independent contractor” or “1099 contractor” is a legal and tax-related term used in the U.S. to refer to a worker that contracts his or her services out to a business or businesses. A 1099 contractor is not an employee of the business or businesses with which he or she works, instead he or she is considered to be self-employed.
There is no single factor that differentiates an employee from an independent contractor, but the general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.
State Independent contractor laws
State laws may differ from federal requirements concerning independent contractors.
>> Learn more about California Independent Contractors
Are you misclassified as an independent contractor?
Think you are misclassifed as an independent contractor? Misclassified workers may be entitled to back wages and under benefits under the law.
Free and confidential consultations are available with our employment lawyers by calling (866) 981-4800 or by filling out the form to the right.