What is the difference between an employee and an independent contractor?
Employees and independent contractors are two of the most common types of workers in Louisiana, but they are distinct from each other in important ways. Employees are workers who are hired by an employer to perform a specific job or service and are subject to the direction and control of the employer in the way the job is done. Employees are typically paid wages, are eligible for benefits, and may be subject to wage and hour laws. Independent contractors, on the other hand, are self-employed workers who provide services to a business or individual in exchange for payment. Independent contractors are not subject to the direction and control of an employer and may set their own hours or rates, providing their services to multiple clients as needed. They are typically paid on an hourly rate or based on the completion of a specific job or service. Since independent contractors are not employees, they are not subject to wage and hour laws.
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