In many industries, it is common for businesses to operate with numerous independent contractors as their workers rather than hiring employees. While this may seem like a small distinction, in practice it is quite significant. If you work for your current employer as an independent contractor, you may want to carefully review your contract and the specifics of your employer’s expectations of your performance to determine whether or not you are properly categorized.
If you suspect that your employer misclassified your status, it is in your interest to look into the matter. Not only may your employer owe you compensation, it may need to provide certain benefits that employees receive under law. In far too many cases, employers simply choose the classification that they believe is in their best interests and operate as if they are in the right until proven otherwise.
Of course, it is also to your employer’s benefit to correct the error before the Internal Revenue Service (IRS) learns you were misclassified as a contractor when you deserve employee status. Once the IRS steps in, the employer faces hefty penalties. If the agency finds that an employer misclassified employees, it must reassess taxes for the employer, which is never something a business wants to endure.
It is wise to review the specifics of your position carefully through the eyes of the law, using the best legal resources you can find. If you need to initiate a legal action, the time and energy you put into building a strong legal strategy can help protect your rights while you fight for fair treatment in the workplace.