Employee vs. Independent Contractor.
Why do employers frequently try to pass off employees as independent contractors?
What is the standard used to determine whether a worker is an employee or independent contractor in Florida?
How does Florida define independent contractor?
What is the penalty for classifying an employee as an independent contractor?
Why do employers frequently try to pass off employees as independent contractors?
While some employers misclassify their workers as independent contractors in error, often employers misclassify their employees intentionally in order to reduce labor costs and avoid paying state and federal taxes.
What is the standard used to determine whether a worker is an employee or independent contractor in Florida?
Florida uses a “right of control” test to determine whether a worker is an employee or independent contractor in most areas of the law.
How does Florida define independent contractor?
Florida Statutes Title XIII defines independent contractor as a person who” performs or agrees to perform specific services or work for a specific amount of money and controls the means of performing the services or work. The worker also incurs the principal expenses related to the service or work that he or she performs or agrees to perform. Moreover, the independent contractor is responsible for the satisfactory completion of the work or services that he or she performs or agrees to perform. In addition, independent contractor receives compensation for work or services performed for a commission or on a per-job basis and not on any other basis. Please see here.
What is the penalty for classifying an employee as an independent contractor?
Under Labor Code section 226.8, willful misclassification of individuals as independent contractors subject employer to civil penalties of between $5,000 and $25,000 per violation.
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