Don’t Let an “Independent Contractor” Label Deny You Your Employee Rights
March 23, 2015 by Teague Paterson
Your status as an independent contractor is based on your relationship with your employer. Title, method of payment, and even written agreements do not always prove that you are an independent contractor. In fact, there is no one rule that dictates your status as an independent contractor. Rather, the total set of circumstances is analyzed based on many factors.
In California, new laws provide added protection for employees who are mislabeled independent contractors. Just because you are paid by a 1099 form, by check or in cash does not make you an independent contractor. Similarly, your title alone does not determine your status. If you don’t live in California, you may still have been misclassified as an independent contractor and can recover damages.
Your employer’s right to control the method of how the work is completed is an important factor in determining employment status. In addition, courts and public enforcement agencies look to factors such as the following:
- Is the work essential to the existence of the employer’s business
- Who provides the tools to perform the work
- Where does the work takes place
- Is the position with the company long-term or more project-based
Independent contractors do not enjoy many of the rights afforded to employees. Independent contractors do not earn overtime, are not subject to minimum wage laws and are not protected by discrimination and retaliation laws. In addition, an employer does not deduct and pay taxes or make contributions that entitle you to benefits such as unemployment and disability insurance or even Social Security. These benefits can be important to your current standard of living and also important over the life time of your career and beyond.
If you have been mislabeled as an independent contractor, you have been denied the rights to which you are entitled as an employee. Failure to pay the proper amount of wages earned is against the law and action can to taken to collect past wages and damages. For example, Uber and Lyft have been in the news for their high valuations for investors. However they have also been in the news for their relationship with drivers seeking minimum wages and benefits. It seems that future court cases may have to decide their status.
If you think you may have unfairly or incorrectly been designated as an independent contractor, please call Beeson, Tayer & Bodine (BT&B) for a confidential consultation on your job rights.
Please also see this prior blog from BT&B on the 2014 National Labor Relations Board (NLRB) ruling that FedEx Ground delivery drivers are employees not independent contractions. Readers may also find an additional reference of interest from Forbes January 2015 on a $10M settlement with Lowes Home Centers that provides lessons for companies working with independent contractors.
The material on this website is provided by Beeson, Tayer & Bodine for informational purposes only and does not constitute legal advice. Readers should consult with their own legal counsel before acting on any of the information presented. Some of the articles are updated periodically, and are marked with the date of the last update. Again, readers should consult with their own legal counsel for the most current information and to obtain professional advice before acting on any of the information presented.
