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Key factors to worker classification

On Behalf of | Oct 27, 2021 | Employment Law

The way that you’re classified as a worker can have a tremendous impact not only on the way you carry out your work duties, but also how you’re compensated. This is because workers that are classified as employees oftentimes receive benefits such as health insurance and paid time off. Additionally, Employees have the benefit of having their employer pay its fair share of payroll taxes.

Independent contractors, on the other hand, receive no benefits from the party that pays it, and these individuals are responsible for paying self-employment tax, which can double their bill. So, how does one determine whether he’s an employee or an independent contractor?

The factors considered in worker classification

There are a number of factors that are assessed when determining whether a worker is an employee or an independent contractor. Here are some of those factors:

  • The amount of control the employer has over the worker: This is probably the most important factor in the classification test. The more control and direction that an employer has over the work in question, the more likely it is that the worker is an employee and not an independent contractor. Of course, this control can occur in a number of ways, from indicating how the work is to be performed to how the work is evaluated and the training provided to the worker.
  • The relationship between the parties: Here, the analysis will consider whether there’s any written agreement amongst the parties and the benefits, if any, that are provided to the worker. Again, the stronger the relationship, the more likely it is that an employer-employee relationship exists.
  • Provision of equipment: Generally speaking, when an employer provides tools or equipment for a job to be done, an employer-employee relationship is created. Therefore, you’ll want to consider whether anything that can be considered equipment has been provided in your case.

Know your rights in your classification case

Employee misclassification can cost you a lot. But you don’t have to just sit back and accept your losses. Instead, you can diligently work to build your case in hopes of recovering any compensation that you would have been owed if you had been classified properly. To learn more about how to competently go about building your case, continue to read up on the topic and reach out for support as needed.