If you’ve ever been told you're a “contractor” but work regular hours like everyone else, you might be misclassified. Many U.S. workers are incorrectly labeled as independent contractors when they legally qualify as employees.
1. Why It Matters
Employees are entitled to:
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Minimum wage
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Overtime pay
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Health and safety protections
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Workers’ compensation and unemployment
Contractors aren’t. They pay their own taxes, receive no benefits, and can be fired without cause.
2. Key Legal Tests
Depending on your state, one of these tests may apply:
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Common Law Control Test: Who controls the work?
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Economic Realities Test: Are you financially dependent?
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ABC Test: Especially in California.
ABC Test checks:
A. You're free from control
B. Work is outside the usual business
C. You’re independently established
If you fail even one, you're likely an employee.
3. Signs You’re Misclassified
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Employer sets your hours
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You use company tools
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You can’t hire helpers
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You’re supervised daily
4. What Can You Do?
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Collect documentation
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Speak with HR
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File a complaint with your state labor board or the U.S. Department of Labor
5. Employer Risks
Employers found misclassifying workers may face:
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Penalties
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Back pay
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Unpaid taxes
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Lawsuits
Final Thought
If your job feels like employment, it probably is. Knowing the rules protects your rights—and your paycheck.
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