In Florida, different kinds of employment exist within a company, and understanding your employment is vital. When it is clear whether one is an independent contractor or employee, understanding one’s rights will follow. This article explains who an employee is and who an independent contractor is, as well as their major differences.
Employee Definition: Who Is An Employee?
An employee is an individual who regularly works for an employer in return for a fixed remuneration: salary. Typically, the agreement terms between the employer and employee exist under a contract of employment, which can be written or oral, expressed or implied. The employees’ work is under the company’s full control, including what should be done and how.
Furthermore, before they are hired, an employee goes through a hiring process known as the recruitment process. Meanwhile, the employee can either be employed full-time, part-time, or on contract—that is, temporarily—to do a specific job. The employee has a specified job, which features duties, tasks, and responsibilities, and they are paid based on their qualifications, skills, position, and experience.
Independent Contractor Definition: Who Is An Independent Contractor?
Unlike employees, independent contractors are not under the complete control of an organization. They are neutral and can be any professional degree holder, including a lawyer, accountant, or engineer, who provides professional service. Their service can either be to the client or a third party on behalf of the client.
Independent contractors are paid on a freelance basis and are responsible for whatever comes of the project for which they were hired. In addition, the independent contractor possesses freedom that the employee does not; the client does not influence or control them. That means he or she is free to apply discretion or judgment on the method they adopt to complete the task at hand.
Differences Between Employees and Independent Contractors
The major difference between an employee and an independent contractor is in the level of control an organization has over them. For example, if the employee can decide how their job is done, they will most likely get the treatment of an independent contractor. With that said, here are the differences between an employee and an independent contractor:
- Where the employee is hired to do a fixed job for a salary, the independent contractor provides services for a fixed compensation.
- The employee’s remuneration is their salary or wages, while the independent gets paid for each project they complete.
- The employee has access to tools, resources, and other equipment required to do their job, which their employer provides. The independent contractor, however, uses his own resources to finish the project.
- The employer decides the employee’s terms of service, including where and when to work, while the independent contractor decides their mode of operation.
- The employee bears the expenses the employer makes to perform their task, while the independent contractor bears their expenses.
- The employee is trained on the right way to perform tasks and duties; the independent contractor does not have that luxury.
- The independent contractor’s relationship with the client is short-term, while the employee’s is continuous.
Conclusion: Rights and Privileges
Employees and independent contractors enjoy different rights under employment
law. Employees’ rights include privacy, freedom from discrimination, and fair compensation.
On the other hand, the independent contractor has a right to freedom over their work and who they work for. “Despite the freedom, independent contractors do not enjoy the same level of legal protections as the employee,” says Attorney Mitchell Feldman of Feldman Legal Group.
