Employee versus Contractor: What’s the difference?

Not all employees can be considered contractors as not all independent contractors are considered as employees. Though they may be similar to one another in some aspects, they are completely different in many ways. One similarity is that they are both paid to work. What differentiates them from one another is the manner of rendering their respective work.


Independent contractors basically have more control over their time and working schedule. Based on their agreement with their employer, they usually provide service at their most convenient time. They can set how much workload they can tackle on certain days. Moreover, they also provide their own supplies, insurances and other work-related equipments. One can say that it’s easier to be a contractor than to be a full time employee who is required to abide by all the rules of his or her employer. An independent contractor’s schedule is more flexible and they need not show up in the workplace on a regular basis.


An employee, on the other hand, works according to the schedule assigned by the employer or the company. Employers are required to provide their employees all the appropriate supplies and equipment needed for them to function efficiently in the performance of their job. Employers have to operate with due regards to employee rights. Being an employee means he is entitled to the usual benefits accorded to salaried workers like overtime pay, minimum wage, bonuses, and other company incentives. Employers also protect the safety and security of their employees by providing their insurance, social security, and paying their taxes. California Labor Code protects employees by mandating employers to respect their employees’ basic rights.


Contractors are responsible for paying their taxes to the government even though some contractors are working under a company. They are also not covered by certain benefits accorded to regular employees. So in case they get sick or encounters accident in the workplace, a contractor cannot expect to be covered by insurance or health benefits that are given to full time employees of the company.


If you work for a company, it has to be clear whether you are treated as a contractor or as an employee.Your employment classification or status would determine what kind of benefits you are entitled to and what basic employee rights you can exercise. California Labor Code protects employees but, unfortunately, some employers don’t comply with the regulations all the time. If you are classified as a regular employee, make sure you know the basic benefits affecting your minimum wage and overtime pay computation. A lot of employees overlook the simple fact that they have to get their due compensation in exchange for the services they provide. Wrong computations that are not rectified right away may have a material effect in the long run.


If you feel that you are being compensated properly as a full-time employee, it might be difficult for you to directly raise your concerns to the management. To be sure that you have basis to complain and seek an audience with the management, a legal advice could be in order. Attorneys that specifically handle labor cases are in the best position to tell you what to do next. You can research and use the internet to find the right legal counsel for your concern. Start by visiting CaliforniaWageLawAttorney.com.

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