What is the Difference Between Employees and Independent Contractors?

The terms “employee” and “independent contractor” are used frequently across most industries. It’s important to know the distinction between those terms because of their legal implications. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards, and applies to employees. However, this doesn’t apply to independent contractors. Sometimes, companies try to hire as an independent contractor and pay that person’s company to get around paying employment taxes, but if you hire somebody and you control their hours, their method of operation, how that person performs their work and they don’t have complete autonomy… they’re an employee. You do not want to end up with an FLSA lawsuit due to a mistake as simple as misclassifying an employee or independent contractor.

Rather than putting your business at risk, you should consider partnering with a qualified lawyer who can address the concerns you may have about your employees. TLF Business Lawyers has a team of attorneys who can assist you and make sure you are in compliance with the provisions of the FLSA.