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

The difference between an employee and an independent contractor in Virginia is determined largely by the degree of control exercised by the employer. An employee is a person who usually works on an employer’s premises, supervised by the employer, and is paid a regular salary or hourly wage. This person is under the control of the employer in terms of the duties and tasks they are required to perform, as well as how and when the job is to be done. An independent contractor, on the other hand, does not work on the employer’s premises and is not usually supervised. They are their own boss and control how and when the job is done, as well as the payment for their services. Employees are generally covered under Virginia’s wage and hour laws, which include minimum wage requirements. Independent contractors, however, are not protected by the same laws since they are not considered employees. This means that independent contractors are not guaranteed a minimum wage, and they can negotiate the fee for their services directly with the employer. In addition, employee benefits such as vacation pay, sick pay, and health insurance are not extended to independent contractors. Independent contractors must provide their own benefits, which can be negotiated as part of their compensation package. Ultimately, the difference between an employee and an independent contractor in Virginia comes down to the employer’s degree of control over the person they hire. It is important to remember that the status of an individual can be reclassified from independent contractor to employee if their working relationship does not meet the criteria of an independent contractor.

Related FAQs

What is the difference between an employee handbook and an employment contract?
What is the difference between a minimum wage law and a living wage law?
What is the penalty for not paying employees the minimum wage?
What is the Family and Medical Leave Act (FMLA)?
What is the impact of minimum wage increases on businesses?
Are employers required to provide employees with work breaks?
What workers are not entitled to overtime pay?
What are the requirements for reporting wages to the government?
What is the minimum wage in my state?
Are employers allowed to pay a lower rate for piecework?

Related Blog Posts

What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023
What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023