Is Your Employer Hiding Your Employment Status?

By on May 20th, 2015

According to Pennsylvania employment law, a written agreement between an employer and employee doesn’t control the worker’s status. For example, a signed employment contract can list employment status as independent contractor or employee. If you suspect that your employer may be hiding your true employment status, read below to learn more about the subject.

Am I Considered an Employee?

For tax and unemployment compensation purposes, the Commonwealth defines an employee as anyone who performs a service he is paid to do. If terminated, he’s eligible for unemployment compensation.

An independent contractor also performs a service he’s paid to do. Does one or more of the following apply to your employment situation?

  • You receive a 1099.
  • The company verbally or in writing designates you as an “independent contractor.”
  • You make a statement that you’re an independent contractor.

However, even if you meet these criteria, none of the above makes you an independent contractor. Pennsylvania law doesn’t conclusively look at the above factors when determining independent contractor status. Instead, it looks at these two criteria to determine if you are excluded from receiving unemployment benefits:

  • The contractor is free from employer’s direction or control.
  • The contractor is engaged in an established trade, profession, business or occupation which is independent.

My Employer Claims I’m an Independent Contractor, but I Don’t Meet the Criteria

An employer may mislabel an employee as an independent contractor if:

  • You work on the employer’s premises.
  • You supervise, hire and pay assistants on the employer’s behalf.
  • You do your work in the sequence the employer wants.
  • You work the set amount of hours your employer requires.
  • You follow all instructions set by employer.

In these cases, you are an employee, not an independent contractor. But if you set your own hours, decide what job tasks you’ll complete, work in your home or a coffee shop, and have the freedom to decide when you want to terminate the contractual agreement, Pennsylvania classifies you as an independent contractor.

Independent Contractors in the Construction Industry

The construction industry differs in terms of employees vs. independent contractors. In many cases, employers mislabel employees as independent contractors in the construction industry.

However, in Pennsylvania, three criteria define whether a person is an employee or independent contractor:

  • Is there a written contract to perform the construction services?
  • Is the worker free from employer’s control or direction when working the contracted services?
  • Does the worker routinely engage in an independent occupation, trade, business, or profession?

Determining Your Employment Status

Many Pennsylvania employees may not receive their correct compensation because they are treated as independent contractors, not employees.If you believe you have been illegally mislabeled as an independent contractor, contact Weisberg Cummings, P.C. today.

We provide free consultations and will listen as you discuss your employment status. We will fight on your behalf for the compensation and correct employment status you deserve.