The employment landscape in New York is complex, and it can be challenging to determine whether or not a worker is an employee or an independent contractor. This distinction is critical, as it affects both parties’ legal rights and obligations.
Employee vs. Independent Contractor: The Difference Under New York Law
An employee is an individual who performs services for another person, the employer, for compensation. The employer has the right to control the manner and means of how the work is done.
In contrast, an independent contractor in New York is someone who is hired to perform a specific job, but the employer has no right to control how the job is done, only the result.
The Importance of Proper Classification
How workers are classified, that is, as independent contractors or employees, is significant. This distinction affects many aspects of employment, including taxes, benefits, and liability. An employee is entitled to certain benefits under the law, such as minimum wage, overtime pay, and workers’ compensation. On the other hand, independent contractors are not entitled to these benefits. Therefore, it is essential to ensure that workers are properly classified to avoid legal complications and to ensure that they receive the benefits to which they are entitled.
If you have questions about labor laws in New York, the New York wage and hour attorneys at The Samuel Law Firm can help.
Factors that Determine Whether Someone Is an Employee
New York law has established several factors to determine whether someone is an employee or an independent contractor. These factors include:
Control: The extent to which the employer has the authority to control how the worker performs the job.
Investment: The amount of investment the worker has made in the tools and equipment necessary to perform the job.
Integration: The degree to which the worker’s services are integrated into the employer’s business.
Opportunity for Profit or Loss: The extent to which the worker can profit or suffer a loss depending on their performance.
Permanency: The length of time the worker has been providing services to the employer.
Skill Required: The level of skill required to perform the job.
Who Supplies Tools and Equipment: Who supplies the tools and equipment necessary to perform the job.
New York courts will consider all of these factors to determine whether someone is an employee or an independent contractor. No single factor is dispositive, and the courts will look at the totality of the circumstances.
Several cases in New York have dealt with the issue of employee classification. In the case of Bynog v. Cipriani Group, Inc., the New York Court of Appeals found that banquet servers were employees, not independent contractors. The court found that the employer controlled the servers’ working conditions, such as dress code and how they carried trays, and that the servers’ work was integral to the employer’s business.
In another case, Zheng v. Liberty Apparel Co., the court found that a group of Chinese immigrants who worked in a garment factory were employees, not independent contractors. The court found that the employer had significant control over the workers, including setting their schedules and providing materials and equipment. The workers had a high degree of economic dependence on the employer.
How The Samuel Law Firm Can Help
If you believe that you have been intentionally or unintentionally misclassified as an independent contractor when you are actually an employee, The Samuel Law Firm can help. Our experienced New York employment law attorneys will review your case and help you understand your rights. We will work tirelessly to help you recover any wages or benefits that you may have been denied due to misclassification. Contact us now for a free and confidential consultation.
