Your employee classification might not stand out amid the minutiae of your daily job tasks and responsibilities. However, this is extremely important as it ensures the company meets its workers’ rights and taxation obligations. When an employer misclassifies a day rate worker as an independent contractor, the implications can be widespread both for the employee and the organization.

As a premier day rate worker overtime pay attorney, The Lore Law Firm has provided sound legal guidance for those improperly classified by their employers. Understanding the difference between the two classifications can help you determine which applies to your situation and why making sure the right one for your job type has been applied is essential.

Classification Differences between Day Rate Employees and Independent Contractors

Both employees and independent contractors may be paid on a day rate or per day basis. However, when it comes to the right to receive overtime pay, there is a major difference between a worker who is classified as an employee and one who is classified as an independent contractor – the employee is legally entitled to overtime while the independent contractor is not.

The difference between a day rate employee and an independent contractor largely centers on the individual’s amount of control regarding their employment circumstances. A day rate worker is characterized by working for a set amount of money for each day worked. This is a flat-rate amount for a predetermined amount of work or hours daily. Day rate employees, just like all types of employees, are subject to a significant amount of control by their employer. They do not have the option to work whenever they want and typically have their tools and expenses covered by the company in question. They have taxes withheld from their payroll and may receive benefits, such as health insurance or paid time off.

Comparatively, independent contractors work according to individual projects and purchase their equipment to get the job done without expecting the company to reimburse them. They typically pay their own taxes and are responsible for their own benefits without financial assistance from the company in question. They are, for all intents and purposes, running their own independent businesses and are simply engaging in project work for their “clients.” Independent contractors get hired to provide a particular product or service (that is not the same as the product or service that the hiring business provides) and is able to determine the manner, means and methods to get the job done – largely free of control by the client who hired them.

Steps to Take If You’ve Been Misclassified as an Independent Contractor

The first thing to do is talk to your employer to determine if the mistake was an innocent oversight and ask them to fix your designation. Ask for an explanation for how this may have happened and what the company is willing to do to remedy the situation if you’ve been penalized financially in any way because of the misclassification.

If your employer is not willing to remedy the situation, you may have recourse through other avenues. For instance, sometimes the IRS is willing to step in and analyze the situation to make the designation based on their parameters for what constitutes an employee. However, this can be complex, which is why working with a day rate worker overtime pay attorney like The Lore Law Firm is beneficial to help you navigate the process.

Learn More from a Reputable Day Rate Worker Overtime Pay Attorney

If you have been misclassified as an independent contractor when you should be a day rate employee, you may have missed out on overtime pay without even realizing it. If you suspect this is the case, reach out to a day rate worker overtime pay attorney with the necessary experience to help you recoup what is rightfully yours. The Lore Law Firm has spent more than two decades helping clients in your situation to get the compensation owed to them by unscrupulous employers.

We will aggressively fight for your rights to ensure that you are not improperly classified and thus inadequately compensated for the work you do each day. We offer award-winning representation that gets results. To receive a free and confidential case review,contact us online or call (713) 782-5291.


Michael Lore is the founder of The Lore Law Firm. For over 25 years, his law practice and experience extend from representing individuals in all aspects of labor & employment law, with a concentration in class and collective actions seeking to recover unpaid back overtime wages, to matters involving executive severance negotiations, non-compete provisions and serious personal injury (work and non-work related). He has handled matters both in the state and federal courts nationwide as well as via related administrative agencies. If you have any questions about this article, you can contact Michael by using our chat functionality.