Independent contractors are workers in business for themselves. They’re generally free to work on multiple projects at the same time and take jobs on a freelance basis. In many cases, they can choose when, where, and how they perform the work.
Employees are workers employed by a business, person, or government entity. In an employee-employer relationship, the employer generally exercises a control over the wages, hours, and working conditions of the employee.
The distinction between independent contractors and employees is an important one. Employees have many legal rights that independent contractors do not. Those can include the right to overtime pay, the right to meal breaks, and the right to a minimum wage.
In California, there are several legal tests to determine whether a person is an employee or independent contractor. The tests are similar, but not identical. The appropriate test will depend on which rights or obligations are at issue. The most important tests are:
Although each test is slightly different, the key factor in each of them is the same: the degree of control the hiring party exercises over the worker. The more control the hiring party exercises, the more likely it is that the worker will be considered an employee.
The rest of this article will examine each of these tests and explain why the distinction between employees and independent contractors matters to workers and businesses alike.
- Source: https://wrklyrs.com/IndyEmp#p1
