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Investment as an indicator of worker classification

Posted on January 22, 2015 11:12 am under Overtime Law and Minimum Wage Violations

Every employment arrangement between a worker and an employer is unique. As such, it is important for both parties to analyze carefully whether to classify a salaried worker as an employee or an independent contractor. These classifications may look simple, but being misidentified as an independent contractor bars an individual from receiving overtime payment and other benefits.

One way to know if an employee is being misidentified as an independent contractor is when the employer owns and provides all the tools, equipment, and facility necessary for the task. A worker’s lack of investment in equipment means the worker is operating not as a separate entity, but a unit integrated with the employer’s business. Meanwhile, if the employer compensates the worker for equipment-related costs that the worker incurs while working for the employer, then the worker might also be considered an employee.

If you believe you have been misclassified by your employer in Wisconsin, consult with an attorney at Habush Habush & Rottier S.C. ® to learn the wide range of legal options available to you. Call us at [phone number] today.