Employee Misclassification

An employee is someone who works for someone else, right?  Maybe, or maybe not. An independent contractor also works for someone else. Defining who is an employee is complex and involves laws, rules, court cases and many state and federal agencies. The simplest standard is that, if a business has the right to control a person's work, that worker is an employee, not an independent contractor. More complicated standards require employers to exercise behavioral and financial control over workers for them to be considered employees. Factors involved include the amount of direction provided over how the work is done, the possibility of profit or loss for the worker, and whether the worker is free to provide similar services to other businesses.