ICs Aren’t Entitled to the Same Benefits and Protections as an Employee

Independent Contractors Aren’t Entitled to the Same Benefits and Protections As an Employee

Welcome back to the blog series on the 13 Myths of Independent Contractors. We created this series to help you navigate some of the potential legal minefields caused by the complex legal environment surrounding independent contractors. The content from this series comes from the whitepaper: Independent Contractor Myths versus Reality.

Myth: Independent contractors are not entitled to any of the benefits and protections provided to people who meet the definition of an “employee”.

This one is tricky, as it depends on whether a proper classification evaluation was performed prior to the engagement. While a worker may be a legitimate independent contractor under one law, they could still be an employee under other, more stringent, laws.

Most protections available under federal and state employment laws are generally available only to “employees.” Thus, they are not available to independent contractors. Federal laws have differing definitions of employment.

For example, under the Fair Labor Standards Act (FLSA), the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), and the Family and Medical Leave Act (FMLA) most workers are employees, but the definitions in other laws may be a little less broad. Therefore, it is possible to not be an employee but rather an independent contractor under one law, and be an employee under a different law (especially the FLSA, FMLA, or MSPA).

To illustrate how different laws define employment as well as the benefits and protections these laws provide to employees, please see the below table.

You can download a copy of this comparison by clicking on the photo. Alternatively, submit the brief form to get access to the full Independent Contractor Myths vs. Reality whitepaper.

IC vs Employee Benefits and Protections


How can I learn The 13 Myths of Independent Contractors?

Sign up to receive the email alert when a new IC myth is published. Or, if you would prefer not to receive the email, you can check back in to the Resources section of our website weekly. 

Share this article on LinkedIn
LinkedIn Icon

About ComplianceHR

ComplianceHR offers the only on-demand, intelligent suite of compliance applications. We are focused on helping companies address the ever-changing federal and state employment law requirements. Our solutions cover many common HR topics, such as employee handbooks, minimum wage, overtime, independent contracting, and more.

We provide employers of all industries, sizes, and locations with solutions that empower employers to handle complex compliance issues. Our solutions take less time, cost, and complexity than traditional methods. The Navigator Suite simplifies employment law compliance, allowing you to streamline your compliance workflow in only a few simple clicks.

Not a ComplianceHR client? You can sign up for a quick intro call and product demo with one of our compliance experts. After the demo, we offer a free trial to explore all of the Navigator Suite applications. See for yourself how they can transform your organization’s compliance practices. Sign up for a demo today.