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.

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