A. There are specific legal requirements for determining if someone is an independent contractor. Often times employers will label someone an "independent contractor" when, in fact, they are not. There is no single rule or test for determining whether an individual is an independent contractor or an employee for purposes of the FLSA. The Supreme Court has held that it is the total activity or situation which controls. Important factors to consider include:
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The extent to which the services rendered are an integral part of the principal’s business.
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The permanency of the relationship.
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The amount of the alleged contractor’s investment in facilities and equipment.
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The nature and degree of control by the principal.
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The alleged contractor’s opportunities for profit and loss.
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The amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent contractor.
- The degree of independent business organization and operation.
While most true independent contractors are not entitled to overtime, if you are being misclassified as one, you are entitled to receive overtime pay.
