Fighting For Workers In Pay Disputes Since 1987

What is an independent contractor?

On Behalf of | Sep 14, 2022 | Wage & Hour Laws

If you are contemplating joining a company, you may want to look at the type of work agreement or contract they want you to sign. In some cases, becoming an independent contractor may make it difficult for you to have the same rights as those employed by the company directly.

While there are many benefits to becoming an independent contractor, you should also consider the drawbacks. Become familiar with some elements you should look out for when deciding on employment as an independent contractor.

Why hire independent contractors?

A company has various reasons for hiring independent contractors versus employees. Liability is one factor employers look at when considering how to structure employment contracts. Depending on the structure of the business, those at the top may want to protect themselves and the company from lawsuits should employees become injured or cause an accident that hurts others.

What is an independent contractor?

An independent position may work better when a company decides that specific job duties do not require a rigid schedule or specific parameters dictating attendance. One of the items to look for in an independent contractor agreement is payment. Wages may not break down hourly but rather by the product. Companies also do not need to pay taxes or offer independent contractors health insurance. Since the pay structure varies for independent contractors versus employees, overtime wages also do not apply.

If you accept an independent contractor position, you may have more freedom during your working hours. However, you may also not qualify for benefits should you become injured while working. If you believe your employer purposely structured you as an independent contractor to get out of paying, you may want to have a professional look at your contract.