FOR LAWYERS

Find Employee Classification Lawyer

Find Employee Classification Lawyer

Employee Classification

As an employer it can be challenging to know how to classify all of the people that work under you. When does someone become a full employee? What kinds of employment are there and how are they classified? Understanding these classifications is vital for avoiding unnecessary penalties and fines from the IRS and other employment groups.

Law Office of Robby N. Long, L.C.

19 years in practice
Adoption, Auto Accidents, Criminal Defense, DUI Law, Employment Law
View Profile

Walstead Mertsching PS

30 years in practice
Employment Law, Personal Injury, Wrongful Death
View Profile

Keyes And Donnellan, P.C.

20 years in practice
Construction Injury, Employment Law
View Profile

Falls Legal, LLC, An Employment Law Firm

14 years in practice
Employment Law
View Profile

Perkins Coie LLP

50 years in practice
Employment Law
View Profile

Law Office of Carla D. Franklin, P.A.

37 years in practice
Divorce & Family Law, Employment Law, Social Security Disability
View Profile

Determining Employee Categories

In general all workers are either some type of employee or an independent contractor. Understanding how to classify employees can be vital to preventing penalties associated with misclassification.

Employee

An employee is generally someone who is under contract for a permanent, exclusive position under a set company or employer. Employees have fewer freedoms, but there are several conveniences that come with being an employee such as withholding of taxes, receiving insurance, and qualifying for worker’s compensation. Employees can work part-time, seasonal, or full-time depending on the nature of the position.

Independent Contractors

Independent contractors are generally defined by the IRS as an individual who is hired by an employer but has the right to control what steps will be taken to accomplish a task in order to achieve an agreed upon outcome. Independent contractors are different from employees in that they are responsible for their own tax withholdings, insurance, and worker’s compensation as opposed to the employer. Independent contractors also have the right to choose who they work for and how much work they take on at once.

Protecting Employment Rights

If you feel that you have been misclassified by your employer and want to seek justice, you will need the help of an experienced employment law attorney. A private defense attorney is able to focus completely on your case and devote far more attention to your case than a public defender would be able to.

In order to achieve this best outcome, however, you will need an attorney who has the expertise and resources to take your case all the way. That’s why you should contact Attorney at Law. By partnering with AAL, you will be able to avoid slogging through the quagmire of unscrupulous lawyers looking to exploit your case.

At AAL, we only partner with the best firms in your area, helping you find the best attorney for your case. Don’t wait, contact AAL today to be matched with skilled and experienced attorneys in your area who practice employment law.

Contact AttorneyAtLaw.com

Are you looking for an attorney? Do you have questions about a legal case you are facing? Contact us now and we will put you in touch with a lawyer for free.

Employee Classification Frequently Asked Questions

1. What is employee classification and why is it important for employers?

Employee classification refers to the way that a worker is considered for tax purposes. Different employee classifications impart different responsibilities on the employer in the fields of healthcare, workers comp, and taxation. 

2. What are the differences between an employee and an independent contractor?

An employee is a permanent worker who has exclusive obligations to the employer. By contrast, an independent contractor is usually self-employed and sells their services to an individual or company to perform specific tasks. 

3. What factors are used to determine whether a worker should be classified as an employee or an independent contractor?

The IRS calculates the relationship between an employee and employee by collecting evidence based on three categories of control: behavioral control, financial control, and relational control. Behavioral control refers to whether or not the business has a right to direct and control what work is accomplished and how the work is done. If the business controls the behavior, it is more likely that the individual is an employer rather than an independent contractor.

Financial control refers to the ability of a business to control the financial aspects of an employee’s job. This refers to factors such as how many unreimbursed business expenses an employee incurs. Independent contractors generally have more unreimbursed expenses than an employee.

Relational control refers to the nature of the employer-employee relationship. Evidence of relational control includes contracts demanding exclusivity or permanence, the extent to which the worker performs key aspects of the business’ function. 

4. Are there legal consequences for misclassifying employees?

If an employer misclassified employees as independent contractors, then they could be found liable for failing to pay employee income taxes, provide healthcare benefits, or pay worker’s compensation. This could require payment of fines as well as compensation for back taxes and unpaid benefits. 

5. How can employers ensure proper employee classification and compliance with employment laws?

In order to ensure that workers are properly classified as either an independent contractor or employee, an employment law attorney should be consulted. An experienced employment law attorney can examine the worker’s relational, financial, and behavioral control exercised in order to determine the proper compliance and employee classification

Attorney At Law is changing how clients connect with lawyers. By providing an innovative platform to lawyers who want to expand their practice’s reach, AAL is bringing law practices into the future.
6142 Innovation Way
Carlsbad, California 92009
Some of the content of this website may be considered attorney advertising under the rules of certain jurisdictions. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.
crossmenuchevron-upchevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram