Employee vs Contractor
Employee versus contractor classification is a significant issue because it can have major economic consequences for workers and employers. There are also two "core factors" that are considered: the nature and degree of the worker's control over the work, and the worker's opportunity for profit or loss based on initiative and/or investment. Additionally, there are three other factors that may be considered as guideposts in the analysis: the amount of skill required for the work, the degree of permanence of the working relationship between the worker and the potential employer, and whether the work is part of an integrated unit of production. Misclassification of employees as independent contractors can result in liability under the FLSA for unpaid minimum wage and/or overtime compensation.
Explore our resources on this topic using the links below.
![woman counting money dollar bills](/templates/yootheme/cache/2e/-8a5ej1-mmq-2e0a1b66.jpeg)
Employee or Independent Contractor? DOL Issues Proposed Worker Classification Rule
![gavel](/templates/yootheme/cache/23/conny-schneider-3hkKv6WzjcE-unsplash-232d70d1.jpeg)
Judge Invalidates Joint Employer Rule, and Independent Contractor Rule Takes Effect
![Misclassification of Employees As Independent Contractors Does Not Violate NLRA, Says NLRB](/templates/yootheme/cache/f3/082919_2122_misclassifi1-f3d5b492.jpeg)
Misclassification of Employees As Independent Contractors Does Not Violate NLRA, Says NLRB
![buttefly classification book on a wooden table](/templates/yootheme/cache/15/classify-annie-spratt-vpFiAD-WWEs-unsplash-15cb6305.jpeg)
Wage and Hour Issues New, Old Rules for Classifying Workers as Employees or Independent Contractors
![Employee Misclassification and Overtime Issues promo graphic](/templates/yootheme/cache/b5/december-webinar-promo-b5f7bc5e.jpeg)
Webinar: Employee Misclassification and Overtime Issues
![employee or indie contractor](/templates/yootheme/cache/3b/WimLaw-Promo-Slide-3bfd5c78.png)