Illegally Classified Jobs
It may be flattering to be considered a “1099 employee,” or “on salary.” Yet, in Washington, these are just some of the ways employers cheat employees. They can be expensive mistakes for the company.
The IRS has published guidelines regarding contractors vs employees their and responsibilities. Additionally, the Fair Labor Standards Act (FLSA) offers a six-part economic realities test that can help you determine if you should be an employee or contractor. The conditions listed can help you determine whether you are reliant upon the hiring party or whether you are in business for yourself.
Did you know there is no such thing as a “1099 employee”? The 1099 form is reserved for self-employed individuals such as consultants or contractors who are not employed by the employer. Almost all employees should receive a W-2 from their employer.
When you have a 1099, the hiring party pays no taxes on your behalf, offers you no health insurance, paid time off (PTO), or pay you overtime regardless of hours worked. The economic realities test above, will be a good indicator whether you are being taken advantage of.
Contrary to popular belief, many jobs in Washington should not be considered salaried (exempt). When you’re on salary, you do not earn overtime. Depending upon your duties and whether you have “direct reports” reporting to you, your employer may be taking advantage of you.
If you are generally instructed about what, when, where and how to work, as opposed to primarily working independently, you should be considered an hourly employee and be eligible for overtime pay. Learn more about when overtime should be paid
Talk to us before you talk with your employer—you may be entitled to lost compensation and benefits.