Employee or Contractor Under Overtime Laws
Posted by
Jeremi YoungMay 03, 2006 10:31 AMAre you treated as an independent contractor by the company you work for? If so, you should take a closer look at whether you are being legally treated that way.
Many company's tell workers they are "independent contractors" in order to avoid the obligations tha come with employment. However, the mere fact that taxes are not withheld from your check does not mean you are properly classified as an indepenent contractor. What's more, it is possible for you to be an independent contract as far as the IRS is concerned but still be an employee under the Fair Labor Standards Act (FLSA), which is the law governing minimum wage and overtime.
What difference does it make? A big one. If you are an employee under the FLSA, and you are not otherwise exempt, your employer must pay you overtime for hours worked over 40 in a workweek. This is true whether you are paid by the job, comission, or in other ways.
Whether you are an employee under the FLSA depends on several factors: 1) the degree of control you, versus your employer, has over your work; 2) the extent of your investment in the job--for example, do you provide your vehicle, tools, etc.; 3) the extent to which opportunity for profit/loss is determined by you versus your employer; 4) the degree of skill required in performing the job; and 5) the permanancy of your relationship.
Are you really an employee?