The debate has raged for years over what constitutes an Employee, or an Independent contractor. There was a recent news report that shipping giant “Fedex”, is in a dispute with the IRS over categorizing their drivers as “independent contractors” and not “employees”.
Many companies like the benefits that come with independent contractors, as they do not have to pay out things like social security, taxes, overhead expenses, and it’s also a way to prevent union organizing.
Misclassification is not a new thing. Some employers do it on purpose, and some do not. What is important to realize, is that laws are in place, and they must be followed. If contract employees are misclassified, it can result in a loss of wages, and can result in unwanted scrutiny, and not to mention, possible future legal fees and court appearances.
You need to know exactly where you stand. Your employer must be very clear to you on your job duties, and he/she must make sure that the jobs you perform fall within the proper guidelines for either an employee or independent contractor.
It is recommended that you do a bit of research, and be absolutely certain that your are classified in the correct category with your employer. However, if you feel that you are being unfairly treated at your place of employment, contact our Employment Law specialist to identify possible legal action.