worker classification

Worker classification refers to the process of categorizing individuals based on their work relationships, typically as either employees or independent contractors. Employees receive regular wages, benefits, and have taxes withheld by their employer, who also controls how work is done. Independent contractors, on the other hand, are self-employed, set their own schedules, and usually handle their own taxes. Proper classification is crucial as it affects rights, responsibilities, and liabilities, such as access to benefits and protections under labor laws. Misclassification can lead to legal issues and financial penalties for businesses.