Independent Contractor vs Employee

Whether intentional or in ignorance of the laws, rules and regulations, employers who are found guilty of independent contractor vs employee misclassifications might have to pay hefty fines, back taxes and interest to relevant government agencies, even if the misclassified independent contractors have already paid their taxes.

The IRS launched a Voluntary Classification Settlement Program that permits employers to correctly reclassify nonemployees as employees while avoiding punishment for misclassification.

Guilty employers might also have to pay back wages and issue retroactive employee benefits to the misclassified independent contractors. In extreme cases, company officials might even be subject to criminal charges and prison time.

If an employer hires you as as independent contractor, but then attempts to control you as an employee to your disadvantage, you may ask the IRS to determine if the employer has misclassified you according to its independent contractor vs employee Common-Law Rules. However, the IRS is more in the business of collecting Federal taxes than protecting workers' rights.

Subsequently, turning to a government agency that protects workers' rights under relevant Federal or state laws (such as one of those linked on the previous page) might be more to your benefit. But, whether you turn to the IRS or a government agency that protects workers' rights, you still might have to file a so-called "independent contractor vs employee lawsuit" to seek damages.

Filing an independent contractor vs employee lawsuit under one of the relevant Federal or state laws might be more to your advantage anyway. Misclassified ICs have successfully sued employers for back wages and retroactive benefits, to which their correctly-classified employee counterparts were entitled. They've also collected penalty money from employers, along with reimbursement for legal expenses and attorney fees.

It's a good idea to consult an appropriate attorney for the best route to take, to seek relief or damages for an alleged independent contractor vs employee misclassification. That's because, once remedied, it's likely that you won't get a second chance to seek damages for the same incident.

An appropriate attorney can also advise you of your legal rights under contract law, per your independent contractor agreement.

Independent Contractor vs Employee
Page > 1 2