What are the laws concerning employee classification as employees or independent contractors?

In Arizona, the labor laws concerning employee classification as employees or independent contractors are governed by the Fair Labor Standards Act (FLSA). The FLSA is a federal law that provides guidelines for states to use when distinguishing between employees and independent contractors. Arizona follows the FLSA guidelines that classify workers based on three characteristics. The first and most important characteristic is the degree of control the employer has over the worker’s job activities. If the employer has the right to control not only the results of the worker’s job but also the means and methods of accomplishing the tasks, then the worker is an employee. The second factor is the worker’s opportunity for profit or loss based on the work they do. If the worker has the ability to profit or lose money depending on their own efforts, then they are likely an independent contractor. The third factor is the level and permanence of the relationship between the worker and the employer. If the work is only a short-term, specific project, then the worker may be classified as an independent contractor. In Arizona, employers must determine classifications of employees and independent contractors based on these guidelines. Understanding these distinctions is important as workers classified as employees receive more protection under labor laws than independent contractors. It is also important to remember that both employee and independent contractor classifications can change depending on the situation and work performed.

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What are the laws concerning employee classification as employees or independent contractors?

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