As a Florida small business owner, you may need to hire independent contractors to assist with various projects and tasks. If you plan on using the services of an independent contractor, it’s important to understand their rights and responsibilities. One question that can arise with this kind of worker is: Do independent contractors have rights in Florida?
What is an Independent Contractor?
An independent contractor is an individual that provides services independent of an employment relationship. According to the Internal Revenue Service (IRS), determining whether a person is an independent contractor rather than an employee depends on the details of the specific relationship in question. Generally, an individual is an independent contractor if the entity or person paying them only has the right to direct or control the result of the independent contractor’s work. By contrast, the independent contractor gets to determine how the work is done.
How Can You Tell if Someone is an Independent Contractor?
The IRS typically looks at the facts and evidence concerning three categories to determine if a worker is an independent contractor:
- Behavioral—does the worker have control over their work, or does that rest more with the contracting business?
- Financial—how is the worker paid? Are they paid more like an employee? Who pays for their expenses, materials, and tools?
- Type of Relationship— Is the relationship more like that of an employee and employer? For example, does the worker get employee-like benefits?
Florida looks at multiple common law factors to determine whether someone is an employee or an independent contractor. Some of these factors include but are not limited to:
- Control over the details of the work
- Employer’s right to say how the work will be completed
- If the worker is subject to the will of the employer
- Whether the paying party can dictate the method of the work performed
- Whether the worker is in a distinct occupation or business,
- Where the work is performed and under whose direction
- The skills required for the work
- Who is supplying the necessary tools to complete the work and the place of work
- The length of the payor and worker’s project
- How the worker is paid
- Whether the work completed is a regular part of the payor’s business,
- What the parties believe about their relationship
- If there is a written agreement and how it defines the relationship
- The functional reality of the relationship, and
- Whether the payor party operates a business.
Why Does it Matter if a Worker is an Independent Contractor?
As a small business owner, you want to be sure you know the difference and are properly classifying your employees and independent contractors. One of the main concerns with independent contractors is when an employer refers to someone by this title when they are really an employee. When a worker is misclassified as an independent contractor, the employer is not paying employee-related taxes to the federal or state government. They also may owe the workers unpaid wages and benefits.
Do Independent Contractors Have the Same Rights as Employees?
Independent contractors do not have the same rights as employees in Florida. For instance, Florida employees have the right to be paid minimum wage and overtime. They are also protected under certain state and federal anti-discrimination laws and can file claims under these acts. Employees can also pursue unemployment benefits. By contrast, independent contractors have the right to enforce their agreements and seek recovery for non-payment. They may also have other rights as provided by statute.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.