Employee Classification Laws

Employee classification laws determine how workers are categorized for legal and tax purposes, primarily as either employees or independent contractors. This classification affects rights, benefits, and obligations. Employees typically receive protections like minimum wage, overtime pay, and unemployment benefits, whereas independent contractors enjoy more flexibility but lack these protections. Misclassifying workers can lead to legal issues and penalties for employers. These laws aim to ensure fair treatment and appropriate compensation, reflecting the relationship and level of control between the worker and the employer. Understanding these classifications is crucial for rights and responsibilities in the workplace.