Healthcare, retirement and paid leave are the pillars of a secure work life for many. When an “independent contractor” designation blocks access to these benefits, it is time to question whether that designation is accurate. Knowing your true employment status can make all the difference in this situation, but how can you prove it?
Signs you might be an employee
Here are key factors that typically indicate you are an employee:
- Your employer controls how and when you work.
- You use company equipment and resources.
- You receive training from the company.
- Your work is an integral part of the business.
- You have a long-term or indefinite relationship with the employer
- You are paid a salary or hourly wage rather than per project.
- Your employer offers benefits.
The distinction between employees and independent contractors affects your taxes, benefits and legal protections.
The ABC test
California’s ABC test makes it even clearer. Under this law, a worker is an employee unless all three of these conditions are met:
- You are free from the control and direction of the hiring entity.
- You perform tasks outside the usual course of the hiring entity’s business.
- You are customarily engaged in an independently established trade or business.
In California, the burden falls on employers to show why they classify workers as contractors.
Steps to take after a misclassification
If you believe your employer misclassified you, start by gathering evidence of your work arrangement. Save emails, contracts, schedules and any other documents that show your work structure.
Next, consider the financial implications. Independent contractors often miss out on minimum wage, overtime pay and various labor protections but may have more tax deductions.
Your best move is to have a skilled employment attorney review your case. Your attorney can help you seek proper classification and any benefits your employer may owe you.