As we’ve discussed in previous blogs, a misclassification by your employer could benefit the company. However, the consequences for you as a worker are not something you should ignore. There are even times when contractors and employees work together, not knowing that they are being classified unfairly or incorrectly.
But what difference does it make to be classified as an independent contractor and an employee? And what are the benefits or disadvantages of each classification?
When we speak of an independent contractor, we refer to a worker who, through a contract, performs only one or more jobs for those who hire him/her sporadically and may be doing work for different people who wish to hire him/her. On the other hand, an employee has a direct contract with the company and receives a periodic salary by working with them on a daily basis.
Now, by knowing the definition of both, we can already see an essential difference in the way they work for someone. In addition, however, there is a clear difference in the benefits that each obtains from the same employer; only those classified as employees receive certain benefits that independent contractors do not.
First, an employee receives a regular salary, has health insurance, days to request paid leave, and overtime paid by his/her employer. In addition, in the event of an accident, you can file a claim to receive compensation for your accident or injuries. And finally, they are 100% protected by labor laws.
On the other hand, independent contractors do not have any benefits, do not have coverage in the event of an accident, do not receive overtime pay, pay their own taxes, receive only one payment for their total work, and are not fully protected by the law.
As you can see, being misclassified can bring multiple downsides to your work life. So if you are being classified unfairly, do not hesitate to contact our attorneys. We can help ensure that your rights are respected.