State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
August 16, 2010
Independent Contractors and Employees in Your Organization

Dan Obuhanych discuss independent contractors and employees in a BLR webinar entitled ‘High-Tech Workers: Who’s Entitled to Overtime and Who’s Not; Avoid the Top 5 Most Common Mistakes’. He explains the difference between independent contractors and employees in an organization. Misclassification of employees and independent contractors can have a significant impact for the company in the form of wage and hour law and other laws. These laws generally protect employees but not independent contractors. Hence, a worker who is classified as an independent contractor is not entitled to any of the protection from these laws. Dan also provided the following information regarding independent contractors and employees:

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!
  • Proper classification of workers as ‘employees’ and not ‘independent contractors’ is important because non-exempt ‘employees’ are entitled to minimum wage, overtime, meal periods and rest breaks
  • In the eyes of the law, an employer may be liable regardless of whether the wrongful classification was intentional or inadvertent
  • There is audit risk from many agencies if employer has misclassified
  • The agency presumes that worker is an employee, but may be ‘rebuttable presumption’, i.e. the employer must establish independent contractor applying multi-factor test
  • Issues can arise where there is existence of written agreement is not conclusive or the issuance of a 1099 tax form rather than a W2 tax form

Dan Ko Obuhanych, Esq., is an attorney in the Mountain View, California office of law firm Fenwick & West, LLP (www.fenwick.com). His litigation practice focuses on labor and employment law, litigating wage and hour suits, unfair labor practice claims, discrimination/retaliation lawsuits, grievance/arbitration matters, and EEOC/DFEH charges.

Featured Free Resource:
Cost Per Hire Calculator
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB06
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://Compensation.BLR.com
Document URL: http://compensation.blr.com/Compensation-news/Compensation/Employee-Overtime/Independent-Contractors-and-Employees-in-Your-Orga/