No matter where or how someone works, it is important that his or her employee classification is correct. Employee classification affects everything from benefits to compensation. Michigan workers who are not sure whether they are correctly classified as an employee or an independent contractor should consider some of the following.
What makes an employee?
Employees are expected to work hours set by their employers. Although the nature of work is evolving and many people work remotely, many employees are still required to physically show up at the office or other place of business. An employee can also be identified by things like:
- Net salaries after employers have taken out income tax
- Benefits like health care, sick days and vacation time
- Eligibility for unemployment compensation
What makes a contractor?
Contractors usually have much more freedom when it comes to working hours and generally set their own. Many contractors work for multiple companies as well, although this is not a requirement. Compensation is also different for contractors, and rather than a salary they are generally paid according to terms laid out in a contract. Contractors do not receive additional payment for any overtime, either.
When it comes to being an employee or a contractor, one is not necessarily better than the other. However, workers deserve accurate pay and benefits to which they are entitled. If a Michigan worker suspects that he or she is not classified correctly, it may be worthwhile to explore all legal options for rectifying this situation as well as seeking compensation for any missed income or benefits.