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

In New Hampshire, there are important legal distinctions between employees and independent contractors. An employee is an individual who is employed by an employer and paid for their services. As an employee, they receive a wage or salary and are subject to minimum wage laws, overtime laws, and other laws and regulations related to wage and hour. An independent contractor is an individual who enters into a contract with another individual or company to provide services for a fee. They are usually self-employed and work on their own schedule, as opposed to regular employees who typically report to the employer’s location to perform their work duties. Unlike employees, independent contractors are not subject to most laws and regulations regarding wage and hour, such as minimum wage and overtime laws. They are responsible for their own taxes and are not eligible for unemployment benefits or workers’ compensation. They may also be exempt from certain employment benefits, such as health insurance or vacation time. Employees are considered to have an employer-employee relationship with their employer, whereas independent contractors are considered to have an employer-contractor relationship. It is important to accurately classify individuals as either an employee or an independent contractor in order to ensure that proper employment regulations are followed.

Related FAQs

What are the laws regarding the payment of bonuses?
Are there any exceptions to minimum wage laws?
What are the rules regarding meal and rest breaks?
Are employers allowed to pay employees differently based on their experience?
Is it legal to pay workers working abroad different wages than domestic workers?
What is the minimum wage for tipped workers?
When can employers legally ask employees to work off the clock?
What is the Fair Labor Standards Act (FLSA)?
How should employers calculate overtime pay for employees who work multiple jobs?
What is wage and hour law?

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

Related FAQs

Related Blog Posts