For most construction companies, it is necessary to have a combination of full-time employees and independent contractors to complete specific jobs. Each of these two types of workers will be able to fulfill different types of roles so that jobs can be completed properly and on time. When using independent contractors and employees, however, it is critical to understand what the differences are from a legal perspective.
Florida has a variety of laws on the books governing how each of these types of workers are to be treated, and how to determine which classification a person should have. Learning about these differences will help ensure you are able to complete jobs successfully and that you don’t run into any legal difficulties. The following are some key differences between these two classifications.
An employee will have a regularly scheduled paycheck. The pay may be based on a set salary, an hourly wage, or some other factors, but it will be distributed in regular intervals. For independent contractors, payments can be made in many ways based on the needs of the job. This can include lump sum payments at the completion of a job, partial payments up front with the remainder upon completion, or any number of other configurations.
While the specific hours worked by an employee may vary, they will generally be required to work a fairly regular schedule over a long period of time. This period of time is often undefined and set to continue until either the construction company, or the employee, decides to end the relationship. Contractors will typically have shorter term work intervals where they are paid to complete a specific task on a specific project.
Tools & Equipment
When someone is working directly for your company as an employee, your business will typically be responsible for providing the tools, equipment, and other required supplies to complete their job. Independent contractors, on the other hand, will often supply their own. This is especially true of specialized contractors who may need very specific tools to complete their jobs.
Importance of Getting it Right
Owners of construction companies need to make sure they are classifying each employee properly, or they could run into legal issues. If misclassified, the worker could sue for lost salary, benefits, or other perks that they should have been entitled to. Having an attorney review your specific situation, and helping to properly classify everyone who does work at your company, can provide a significant amount of legal protection. Contact FCLG to schedule a consultation and learn what we can do for you.