Do Independent Contractors Get Overtime in Texas?

Employers sometimes illegally attempt to save money by wrongly classifying their employees as independent contractors. If an employer wrongly classified their employees with this title, those employees may not receive vital protections like minimum wage, compensation for hours worked overtime, unemployment benefits, or worker’s compensation. Additionally, some employers purposefully fail to pay overtime wages to their independent contractors. So, do independent contractors get overtime? What other rights are independent contractors entitled to?

At Leichter Law Firm, our unpaid overtime lawyers know that most workers, by law, are entitled to receive overtime pay. However, many employers try to short their employees and independent contractors of the overtime pay they earn. If your employer has failed to pay you for overtime that you are entitled to, our labor and employment lawyers are here to help.

If you believe that you do not have a sense of control over how you do your work, your employer may have wrongfully classified you as an independent contractor. If you want just compensation for this wrongful employment classification, please do not hesitate to call Leichter Law Firm at (512) 495-9995 for help with your labor law dispute. We will ensure you understand your legal rights and have the necessary tools to fight for them.

What Is an Independent Contractor?

An independent contractor is an individual who, in pursuing an independent business, undertakes to do a specific piece of work for someone or something else, using one’s own means and methods. Basically, the idea is that an independent contractor has control over how his or her work is being done, even though his or her work is being done for someone else. To put it simply, they are self-employed.

Common examples of independent contractors include doctors, lawyers, accountants, and even dentists. The person or business owner who works with an independent contractor and pays for the services may only control the result of the work. They may not control what work is done or how it is done. If any kind of employer-employee relationship exists, the worker is not an independent contractor.

What Is the Difference Between an Employee and an Independent Contractor?

Distinguishing between an independent contractor and an employee is a complicated legal problem. Generally speaking, the right to control one’s work is the main factor in determining if someone is an independent contractor or an employee. An employer generally has the right to select, control, and discharge an employee, but an independent contractor is not under the direct control of an employer.

The bottom line is that determining whether you are an independent contractor or an employee is a tough and tricky legal issue. If someone is an employee, their employer will withhold Social Security, income tax, and Medicare taxes from their wages. These are known as payroll taxes. Those taxes are not withheld from their wages when it comes to independent contractors. Importantly, many labor and employment laws do not apply to contractors.

How Will a Court Find “Control” Over an Employee or Independent Contractor?

The crucial component in determining if someone is an independent contractor or an employee is the right to control the individual’s work. To find control, the courts have turned to the following factors:

• The degree of control exercised by the alleged employer
• Skill and initiative required to perform the job
• The extent of the relative investments of the worker and the alleged employer
• Degree to which the worker’s opportunity for profit and loss is determined by the alleged employer
• The permanency of the relationship

If your employer has been telling you when, where, or how to complete your work, you may be wrongfully classified as an independent contractor. This deprives you of benefits, overtime pay, and other compensation you would be entitled to if you were correctly classified as an employee. Please contact a Fair Labor Standards Act (FLSA) lawyer if you think you have been wrongfully classified as an independent contractor. Leichter Law will help you get the money you deserve.

Independent Contractor (1099) Employee Rights

Although many traditional employment benefits, such as health insurance, minimum wage, and workers’ compensation are not available for 1099 employees, they have other rights that regular employees do not. Specific rights that contractors have that employees do not include the following.