What is the difference between an employee and an independent contractor?

Employees and independent contractors are two distinct types of workers, and understanding the difference is important for complying with wage and hour law in California. An employee is a worker who has an ongoing working relationship with an employer. Employees have an expectation that they will continue to receive a paycheck each pay period, and their employer is responsible for withholding taxes and providing benefits. Employees are subject to their employer’s instructions and supervision, and the employer must comply with wage and hour laws, such as minimum wage and overtime requirements. Independent contractors are hired on a job-by-job basis and are not classified as employees. They are generally responsible for paying their own taxes, and they are not eligible for benefits or overtime pay. Independent contractors often have more freedom and flexibility as they are able to decide when and where they work, and they are not subject to their employer’s direct supervision. In California, employers are required to adhere to certain laws and guidelines when determining how to classify their workers. Misclassifying employees as independent contractors can result in serious penalties, so it is important for employers to understand the difference between the two.

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What is the difference between an employee and an independent contractor?

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