Misclassification: Employee or Independent Contractor?

Generally, Title VII of the Civil Rights Act of 1964 and California's Fair Employment and Housing Act protect employees' rights and not independent contractors. An independent contractor has the right of control over his work and is in business for himself/herself. An employee works on behalf of the employer. Courts use various tests and factors to determine whether an individual is classified as an employee or independent contractor. Why does this matter? ​​​

Here are some factors to consider:

• The right of control that the hiring party has over your work ​
• The skill and tools used to complete the work
• The location and duration of the work
• Whether the hired party has employee benefits
• Intent of the parties
• How the working relationship is terminated
• How the hired party is paid
• Whether the work is part of the regular business of the hiring party

Employers who misclassify employees as independent contractors ​avoid:

• Payroll taxes,
• Minimum wage or overtime,
• Wage and hour law requirements such as providing meal periods and rest breaks
• Unemployment insurance
• Workers' compensation
• Paid time off