Are Independent Contractors Owed Overtime?

If you work as an independent contractor, you may be wondering if you are owed unpaid wages because you were not paid at an overtime rate. In short, independent contractors in Florida, as opposed to employees, are not owed overtime and do not have the same rights as workers who are classified as employees under the Fair Labor Standards Act (FLSA). However, an important question that you will want to consider is whether or not you have been properly classified as an independent contractor. In other words, could you actually be an employee (as opposed to an independent contractor) and therefore owed overtime pay under the FLSA?

Employers that misclassify employees may do so accidentally, or intentionally to avoid having to provide overtime pay and other benefits required for employees. If you have any reason to think that you might be misclassified as an independent contractor such that you are owed unpaid wages for overtime worked, it is important to seek legal advice. Our Palm Beach Gardens wage and hour attorneys can explain the different classifications more clearly, and we can discuss your specific case with you today.

Was I Misclassified as an Independent Contractor? 

Could you have been misclassified as an independent contractor, meaning that you are actually an employee who is owed overtime pay and who has other rights under the FLSA? According to the National Employment Law Project, anywhere from 10 to 30 percent of employers routinely misclassify employees as independent contractors. With that kind of common misclassification, it is particularly important to talk about your employment classification with a lawyer.

If you were misclassified, you could be owed unpaid wages for overtime hours worked, as well as minimum wage protections.

How to Determine If I Was Misclassified? 

There is a six-factor test, with all factors weighed equally, to determine whether a worker should be classified as an independent contractor or an employee. Those factors include:

• 1) Opportunity for profit or loss depending on managerial skill;
• 2) Investments by the worker and the potential employer;
• 3) Degree of permanence of the work relationship;
• 4) Nature and degree of control;
• 5) Extent to which the work performed is an integral part of the employer’s business; and
• 6) Skill and initiative.

The US Department of Labor suggests that, if you are currently classified as an independent contractor but one or more of the following apply, or may actually be an employee:

• You work for another party’s business;
• You use the employer’s materials, tools, and equipment;
• You are prohibited from working for other employers;
• You have a continuing relationship with the employer;
• Your employer decides when and how you do your work; and
• Your employer assigns your work.

Contact a Palm Beach Gardens Wage and Hour Law Attorney 

Is it possible that your employer misclassified you as an independent contractor? If your work duties and employment relationship look more like those of an employee rather than an independent contractor, it is essential to have one of the experienced Palm Beach Gardens wage and hour lawyers at Sconzo Law Office assess your situation for you. If you have been misclassified as an independent contractor, you could be owed unpaid wages for overtime in addition to other remedies. Contact us today to discuss your situation.

Sources:

federalregister.gov/documents/2024/01/10/2024-00067/employee-or-independent-contractor-classification-under-the-fair-labor-standards-act

nelp.org/app/uploads/2017/12/Independent-Contractor-Misclassification-Imposes-Huge-Costs-Workers-Federal-State-Treasuries-Update-October-2020.pdf

dol.gov/agencies/whd/flsa/misclassification