Due to a growing number of construction employers misclassifying construction workers, the Department of Labor (DOL) is increasing its efforts to enforce the Fair Labor Standards Act (FLSA) through its Wage and Hour Division.
For this reason, the St. Petersburg construction lawyers of Cotney Construction Law strongly advise construction professionals to know and understand the laws that govern employee labor and to make every effort to comply. The first step is to understand the difference between independent contractors and employees. Visit Part 2 for the remainder of the article.
The Difference Between Independent Contractors and Employees
An employee is one who is dependent upon their employer economically and is therefore covered under FLSA. An independent contractor is one who owns their own business and doesn’t depend on an employer nor receives the same job protections or tax deductions as traditional employees. A person’s classification as independent contractor or employee is determined by an economic realities test that the FLSA conducts. Most of the time, workers are truly employees; nonetheless, according to the DOL, the following factors are used to measure an employee relationship in regard to judging if a worker is indeed an employee:
- The work the employee performs is essential to the employer
- The worker possesses special skills that can be used independent of employer
- If the relationships is considered indefinite or permanent versus
- The control the employer has over the employee in relation to pay and hours worked
- The employee’s vulnerability to profit and loss if they operate in a managerial capacity
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.