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.

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