In the world of business, it's crucial to understand the legal distinctions between independent contractors and employees. The two classifications have different rights, responsibilities, and obligations, and it's important to know which one applies to your situation. In a recent article by Kiplinger, Attorney Jay Rosenlieb of Klein DeNatale Goldner provided insights on the key differences between independent contractors and employees.
First and foremost, the key difference between independent contractors and employees is the level of control that an employer has over them. Employees are typically given direction and guidance by their employer, whereas independent contractors are responsible for managing their own work and schedules. This means that employers have more control over the work product of employees, while independent contractors have more flexibility and autonomy in how they complete their work.
Another important difference is the level of financial responsibility. Employees typically receive a regular salary or wage, and their employer is responsible for paying payroll taxes, unemployment insurance, and other benefits. Independent contractors, on the other hand, are responsible for managing their own finances, including paying their own taxes, obtaining their own insurance, and covering their own expenses. It's important to note that misclassifying an employee as an independent contractor can have serious legal and financial consequences. Employers who misclassify employees may be liable for unpaid taxes, fines, and other penalties. Additionally, misclassified employees may miss out on important benefits, such as workers' compensation and unemployment insurance.
If you're unsure about your classification as an independent contractor or employee, it's important to consult with an experienced employment attorney. They can help you understand your rights and obligations and ensure that you are properly classified under the law. Understanding the differences between independent contractors and employees is essential for both employers and workers. By working with an experienced attorney, you can ensure that you are properly classified and protected under the law. For nearly 70 years, the law firm of Klein DeNatale Goldner has been helping business owners, investors and entrepreneurs make the most of business opportunities in the San Joaquin Valley.
Helping Your Business Grow and Prosper
As your business faces new opportunities, we can provide additional assistance on an as-needed or general counsel basis. We can facilitate a business acquisition or the purchase of commercial property. Our lawyers can advise you regarding employment law matters. Klein DeNatale Goldner can assist you throughout the business growth cycle, helping you prosper and overcome challenges. Call Klein DeNatale Goldner at (661) 485-2100 or contact us online to schedule a consultation with one of our business lawyers.