What are the differences between independent contractors and employees?

Employees and independent contractors have different rights and obligations under Wage and Hour Law in Maryland. An employee is someone who works for an employer and is subject to the employer’s control, instructions, and supervision. An employer must provide an employee with certain benefits such as workers’ compensation insurance, and the employer is responsible for paying taxes and other contributions on behalf of the employee. An employer must also pay the employee a set wage that meets the minimum wage, overtime pay, and other benefits as required. An independent contractor, on the other hand, is someone who is self-employed and performs services for another person. The contractor is not subject to the direction and control of an employer, and is responsible for paying their own taxes and other contributions. The contractor can also set their own hours and determine how the services are performed, and often negotiates an agreed upon fee for their services. In addition, there are other legal distinctions between independent contractors and employees. For example, when an independent contractor is hired, the employer does not have the obligation of providing benefits like health insurance, Social Security, or paid time off. An independent contractor is generally not permitted to participate in employer-sponsored retirement plans and does not have the right to bring claims against the employer related to the termination of their contract. Overall, employees and independent contractors have very different rights and obligations that must be respected in accordance with Wage and Hour Law in Maryland. It is important for employers to be aware of the legal distinctions between the two and to comply with the applicable laws.

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What are the differences between independent contractors and employees?

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