Am I an independent contractor or employee? Should I receive overtime?
Oftentimes, employers misclassify employees as Independent Contractors instead of Employees. Consequently, those employees are not paid overtime wages and benefits.
Our Ohio overtime lawyers can answer all of your questions regarding whether or not you are properly classified as an independent contractor.
According to the IRS, 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. In other words, you are not an independent contractor if you perform services that can be controlled by an employer – meaning what will be completed and how it will be completed. Even if you have freedom of action, if the employer has the legal right to control the details of how the services are performed, then you are an independent contractor. For more information on the IRS’s definition of independent contractor, then you may visit here.
According to the IRS, the general rule is that an individual is an employee if their employer can control what will be done and how it will be done, regardless of whether they are given freedom of action. What matters is that the employer has the legal right to control how services are performed. For more information on the IRS’s definition of independent contractor, then you may visit here.
Employee v. Independent Contractor
An employee is entitled to minimum wage and overtime rights under the Fair Labor Standards Act (“FLSA”). According to the FLSA, “employ” means to “suffer or permit to work.” Thus, workers who are economically dependent on the business of the employer, regardless of skill level, are employees. Alternatively, independent contractors have economic independence and are in business for themselves.
There are a number of “economic realities” factors designed to answer whether an individual is an employee or independent contractor. The totality of the circumstances (working relationship) determines an individual’s proper classification. The following factors are considered under the FLSA:
- The extent to which the work performed is an integral part of the employer’s business;
- Whether the worker’s managerial skills affect his or her opportunity for profit and loss;
- The relative investments in facilities and equipment by the worker and the employer;
- The worker’s skill and initiative;
- The permanency of the worker’s relationship with the employer; and
- The nature and degree of control by the employer.
For more information from the Department of Labor about misclassification as an independent contractor, you may look here.
What if I believe I have been misclassified as an independent contractor?
Contact our office today to speak with Ohio FLSA attorneys about your working relationship to determine if you have been misclassified as an independent contractor. As you can see by the brief information provided here, overtime laws are complicated and employers do not always comply with the laws. Each case must be evaluated and analyzed on a case-by-case basis. If you question whether you should be paid overtime, call our Ohio overtime attorneys. You may be misclassified as an independent contractor and entitled to overtime. Our office is here to advise you of your rights and guide you through the legal process. For any other questions about your rights to overtime wages, then you may contact our office for a FREE consultation with Ohio FLSA lawyers by filling out the information on our contact us page or calling 1-614-949-1181.