What is the difference between an independent contractor and an employee?

Hi, I’m Innessa Huot and I’m an employment attorney.

The difference between an independent contractor and an employee is that employees work for someone else, where an independent contractor is in business for themselves. Now, it’s important to note that just because you have your own LLC or you’re being paid on a 1099 instead of a W2, that doesn’t automatically make you an independent contractor. True independent contractors, they control the manner in which they perform their work and they operate under a very limited oversight. Independent contractors also set their own schedules. They have their own hours. They typically have their own tools and equipment, and they can even work for more than one company at the same time. They really control their own work.

Now, the distinction between employee and independent contractor is actually very significant because it’s only the employees that get the protection of the federal and state wage and hour laws. Independent contractors do not get the same protections because they’re considered their own employers. Now, if you think you’ve been misclassified as an independent contractor, then you may be entitled to wages, overtime and other damages going back 3-6 years, depending on what state you worked in.

Give us a call and I would be happy to speak with you so that you can learn more about your rights. Thank you for watching.