What is an independent contractor?

An independent contractor is a person who provides services to an organization but is not an employee of the organization. This means the contractor is not entitled to the same benefits and protections given to employees, such as vacation pay, sick leave, and worker’s compensation. In California, independent contractors are also not covered by state labor laws, such as minimum wage laws or anti-discrimination regulations. The difference between an employee and an independent contractor is mainly determined by how much control the organization has over the person’s work. An independent contractor typically has more control and autonomy over their work and how they do it than an employee. Generally, independent contractors have the right to set their own hours, dictate how the job is done, set their own rates, and even hire other people to help them. In California, when determining whether a worker is an employee or an independent contractor, the courts look at the total level of control the organization has over the worker. A few factors the courts consider include the degree of control, how important the services are, and the degree of freedom from control. As a result, it is important for employers in California to be aware of the differences between an employee and an independent contractor and know when to classify a worker as one or the other.

Related FAQs

Are employers required to pay employees for unworked holidays?
Are employers required to provide health and safety training to employees?
What is the Age Discrimination in Employment Act (ADEA)?
Can an employer refuse to hire an applicant based on his or her age?
What are my rights if my employer withholds my final wages?
What are the rights of employees under the Immigration Reform and Control Act?
Can an employer require an employee to work overtime?
Are employers allowed to require employees to attend training sessions?
What rights do employees have in a unionized workplace?
Are employers allowed to ask job applicants about their religion?

Related Blog Posts

Employment Law Overview: What Employers Need to Know - July 31, 2023
Understanding Compensable Time in Employment Law - August 7, 2023
Minimum Wage Standards in Employment Law: What Employers Need to Understand - August 14, 2023
An Overview of Unemployment Benefits and Related Employment Laws - August 21, 2023
Common Mistakes Employers Make in Employment Law - August 28, 2023