An independent contractor describes the relationship between two people where one person pays another person doing a job like building a deck on a house. It does not mean that everyone who works for that person is an independent contractor.
A person cannot have someone sign on as an independent contractor when the person directs their work on a daily basis and tells that individual what to do every day. There are many factors involved. Most of the time, people are considered employees under the Fair Labor Standards Act.
Nashville independent contractor lawyers know that employees are not considered independent contractors when they have a working relationship with the employer on more than just a single project. Speak with an established employment attorney right away regarding your case.
Length of employment is one factor that makes an independent contractor different from an employee. A single project is usually done by an independent contractor. An everyday job is done by an employee. Other factors are the supervision of the person and the amount of money the person makes on the job. Nashville independent contractor lawyers can help protect those with unique working relationships. Some questions regarding pay that can establish whether someone is an employee or contractor include:
The big difference for independent contractors is that employees are entitled minimum wage with overtime. That is not necessarily true for independent contractors. The courts usually come down in favor of calling people employees rather than independent contractors.
The designation of an independent contractor under the Fair Labor Standards Act keeps someone from being entitled to overtime or minimum wage. It could technically be for minimum wage as well. However, if a person is working for someone who tells them what to do every day, that person is an employee and is entitled to each protection under the Fair Labor Standards Act.
There are a lot of Nashville independent contractor laws under the guidance of the Department of Labor’s Interpretive Bulletin. The DOL publishes interpretative bulletins that are not necessarily binding in the court but are influential on the court. The bulletins provide information about how the DOL establishes whether someone is an independent contractor or an employee; how someone qualifies for a certain exemption and that type of thing.
The DOL looks at the person’s work and whether they are part of the integral business. For example, if a doctor hires a contractor to build a porch, the contractor is probably not an employee because their work is not part of the doctor’s business. If the doctor hires someone to build the porch, who then pays someone else to do the work, chances are that person is an employee because they are doing work directed to them by the original contractor and they do not have much freedom in their job.
A person might be hired to do a job and is told that the cheaper they do the project, the more money they can make. That tends to show that the person is an independent contractor. However, when they have to do everything their employer says, they are more of an employee.
A worker’s investment consists of tools, trucks, and other equipment that is used to get their work done. The work performed requires special skill and initiative and is another issue the Department of Labor takes into consideration. The permanency between the worker and employer is another aspect that the Department of Labor looks at. They determine whether the work is a one-time project or is done every day for months.
Many employers try to avoid paying minimum wage and overtime by calling a person an independent contractor and somehow still pay them by the hour. The first sign that a person is not an independent contractor is when they are being paid by the hour.
When a person is an independent contractor, they are paid by the job. Calling someone an independent contractor is a tool, mostly used in the construction industry to avoid paying a person the minimum wage and overtime. A Nashville independent contractor lawyer can help a person determine whether they are an employee or an independent contractor. The lawyer can inform the person about what they are entitled to under the Fair Labor Standards Act.
Another important question to consider is the nature and degree of the employer’s control. An employee is not given much freedom on how they do their job. When the person is told what time to be at work, what time to leave, and how many hours to work every day they are an employee. Independent contractors may do one job one day and not go back to a job for five more days; or they are told they are needed every day for three weeks. That shows they are more of a contractor.