Employee or Contractor – Why Does it Matter?
Employee or Contractor – Why Does it Matter?

It’s an ongoing battle where companies want to call their workers contractors, not employees. From FedEx to Uber, we continue to see this issue across various industries.

If a work is an “independent contractor,” the worker has to pay all of his social security and Medicare taxes (FICA). These taxes account for over 13% of someone’s earnings and are to be split with the company paying 7.65%. Also, if the worker is laid off, he is only entitled to unemployment benefits if he was an employee.

Additionally, other rights are lost to the worker if he is a contractor. There would be no minimum or overtime pay, and rest breaks and other types of discriminatory rights are missed, including access to the Family Leave Act.

In short, companies want their workers to be “independent contractors” in order to pay substantially less for their work, and avoid legal obligations.

Take FedEx for an example. California FedEx Ground drivers were found to have been misclassified with FedEx shorting their wages and benefits. FedEx was ordered to pay $2.28 million to resolve the class action after the court found that the company was actually an employer.

The court considered that the “Operating Agreement,” or contract, provided for extensive specifications where equipment and methodology in time allowances and geographic areas of performance made workers employees, not independent contractors.

Our firm has been handling personal injury cases throughout the California Low Desert and High Desert communities for over 30 years. With a 95% success rate, the California personal injury attorneys at Walter Clark Legal Group will fight to hold those responsible for your loss accountable and win compensation to cover medical bills, lost wages, and pain and suffering. If you have been injured and want to discuss your legal options, contact us today at (760) 777-7777 for a free consultation with an experienced personal injury lawyer. We have offices in Indio, Rancho Mirage, Victorville, El Centro, and Yucca Valley, and represent clients through the entire California Low Desert and High Desert communities.

DISCLAIMER: The Walter Clark Legal Group blog is intended for general information purposes only and is not intended as legal or medical advice. References to laws are based on general legal practices and vary by location. Information reported comes from secondary news sources. We do handle these types of cases, but whether or not the individuals and/or loved ones involved in these accidents choose to be represented by a law firm is a personal choice we respect. Should you find any of the information incorrect, we welcome you to contact us with corrections.

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