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The distinction between employee and independent contractor

Businesses sometimes hire independent contractors to take care of job duties that their employees can’t handle. There are times when the line between an independent contractor and an employee becomes very blurry. Workers who aren’t classified properly are likely missing valuable benefits that come with being classified correctly.

Several factors determine what classification an employee should have and these can be difficult to comprehend at first. There are a few basic points that might help you to figure out the correct classification for your job role.

How is employment classification determined?

In order to be considered an independent contractor, there are a few points that must be met. The person must be free from the direction and the control of the company that hires them. They must perform work outside of the normal business of the company hiring them.

Other terms may also apply and there are certain situations in which those questions won’t apply. In California, there are two distinct tests, the ABC test and the Borello test, that are used to determine whether a worker is an independent contractor or employee. They both set out guidelines to help ensure that businesses provide the appropriate classifications for workers.

It’s imperative that all workers are classified correctly. If you have reason to believe that you’ve been misclassified as an independent contractor when you should be an employee, you should discuss the matter with someone who’s familiar with how these classifications are handled. There’s a chance that legal action might be necessary if you have been misclassified.


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