workers' classification

Workers' classification refers to how employees are categorized based on their employment relationship with a company. Common classifications include "employee" (those who work directly for a company, often receiving benefits and subject to control) and "independent contractor" (individuals hired to perform specific tasks, generally self-employed with more autonomy). Proper classification affects rights, taxes, and benefits. Misclassification can lead to legal issues, so companies must accurately determine a worker's status based on factors like control, independence, and work arrangement. This helps ensure compliance with labor laws and fair treatment of workers.