What are the differences between independent contractors and employees?

Employers and workers often don’t understand the differences between independent contractors and employees, especially when it comes to Wage and Hour Law in California. Independent contractors are self-employed and generally control their own working arrangements. They are responsible for their own taxes, and do not receive benefits such as health insurance, workers’ compensation, or vacation time. Independent contractors can be paid on a piece-rate, contract, or commission basis. In addition, independent contractors are typically free to accept as many jobs as they wish and to set their own schedules. Employees, on the other hand, are considered “hired” by an employer and are usually required to follow specific hours and rules set by the employer. Employees are usually entitled to a set wage, overtime pay, paid vacation, sick leave, health insurance, and other benefits. Employees are also covered by the California Wage and Hour Law, which sets wage and hour requirements for minimum wage, overtime, and other requirements. It is important to understand the differences between independent contractors and employees when it comes to Wage and Hour Law in California, as the rules, regulations, and consequences for misclassification of workers vary significantly. Employers must abide by the laws and correctly classify their workers to ensure they are in compliance with California Wage and Hour laws.

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What are the differences between independent contractors and employees?

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