Independent Contractors are Not entitled to Overtime Pay and Benefits
Posted by robert ottinger on Tue, Mar 02, 2010 @ 07:03 AM
People who are classified as independent contractors are not entitled to the following benefits and protections:
- No right to overtime pay
- No right to minimum wages
- No right to pay for rest breaks or meal periods
- No right to reimbursement for business expenses
- No right unemployment insurance, disability insurance or social security
- An independent contractor is also responsible for paying taxes that are normaly paid by an employer.
- Companies usually do not provide indendpenent contractors with the health benefits that are provided to employees
The only true benefit of being an independent contractor is some measure of freedom and flexability. If a person is truly an independent contractor, then they will have control over their hours, the location of the work, the pay structure, and the nature of the work being performed. Unfortunately, companies often misclassify people as independent contractors and treat them like employees. In this situation, the individual does not realize any of the benefits of being an indepdent contractor and loses the benefits of being an employee.
It is illegal for a company to classify an employee as an indepedent contractor. Emmployees have challenged the independent contractor classification and recovered money for unpaid overtime. In an upcoming post, I will explain how you can determine if you are an employee or an independent contractor.