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Overtime and Minimum Wage for Independent Contractors/Employees – Raleigh Wage and Hour Lawyer


To avoid the Fair Labor Standards Act’s requirements for the payment of overtime and minimum wage, many companies are labeling employees as independent contractors. However, simply labeling someone an “independent contractor” does not make it true. If your employer is labeling you as an independent contractor to avoid paying you overtime or minimum wage, contact the attorneys at Maginnis Law, PLLC at 919-960-1545 for a free consultation regarding your rights.

To determine whether a person is an independent contractor or an employee, courts have created the “economic realities” test. In interpreting the economic realities test, courts may apply many factors including: (1) the skill and initiative required by the work; (2) the degree of control exercised by the alleged employer; (3) the permanence of the relationship; (4) the worker’s opportunity for profit and loss through managerial skill; (5) the extent of the relative investments in equipment and material; (6) the extent to which the service rendered is an integral part of the employer’s business.

Because there are so many factors, determining whether a worker is an independent contractor or an employee is a highly fact-dependent analysis. Just because a worker meets one or more of the factors does not automatically make them either an employee or an independent contractor.

Courts have been quick to disregard false arrangements to give the appearance of an independent contractor relationship. As an example, employers may arrange to have an employee perform after-hours work on the jobsite or at home. Simply because the after-hours work is different than the work normally performed does not make them an independent contractor. They will still be an employee and must be paid overtime and minimum wage. Similarly, alleged independent contractors that do the same work as employees are likely to be classified as employees, not independent contractors.

Maginnis Law, PLLC is an unpaid wage and overtime law firm that represents employees who were falsely labeled as independent contractors. Contact the Raleigh unpaid wage and overtime lawyers at Maginnis Law, PLLC at 919.960.1545 for a free consultation regarding your rights or submit a confidential new case inquiry here. Maginnis Law, PLLC is a Raleigh firm handling employment cases dealing with unpaid wages and overtime throughout Wake County, Cary, Apex, Durham, Vance County, and Henderson. The firm takes certain wage and hour/overtime cases throughout North Carolina, particularly when groups of workers are involved. Contact the firm to discuss your overtime claim today.

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