Worker Classification

Worker classification is the legal line between an employee and an independent contractor. The label decides which wage, overtime, tax, and benefit rules apply, and who pays for things like payroll taxes and workplace injuries. The Department of Labor, the Internal Revenue Service, and state agencies each use tests to decide how a worker should be classified.

People usually bring questions about how to tell an employee from a contractor, what rights independent contractors have, and how freelancers report income. They also ask how gig and platform work fits, how exempt and non-exempt status affects overtime, and who is responsible when workers cause damage.