Employee classification is important to know. Depending on whether you get classified as a typical employee or an independent contractor, it can impact a lot.
What are the differences between employee classifications? And what happens if your employer misclassifies you?
Identifying an independent contractor
Business News Daily talks about the differences between independent contractors and other types of employees.
First, independent contractors serve as contracted professionals who provide their services for a usually short period of time in exchange for compensation. They create an agreement with their employer. This agreement covers things like the amount and type of work done, duties, pay and other aspects. Contractors can work for as many companies or employers at a time as they like.
Some of the most common independent contractor jobs include real estate agents, graphic designers, IT professionals and real estate writers. They have autonomy even within a network or agency.
Identifying traditional employees
On the other hand, traditional employees have a significantly reduced amount of freedom. Employers have the right to oversee and control their employee’s work. They cannot work for multiple companies at a time and usually have to abide by a non-compete agreement.
In exchange, however, they usually have more protections and benefits.
In some cases, an employer may either intentionally or unintentionally misclassify an employee. This can lead to issues like a regular employee not having access to their due benefits because of a classification as an independent contractor.
It is important to sort these issues out as fast as possible for the sake of everyone involved.