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Houston Employers Mistake Employees for Independent Contractors

  • By: Lionel Martin
  • Published: April 3, 2014
Houston Employers Mistake Employees for Independent Contractors

Time and time again we talk with experienced business owners who make big mistakes when it comes to deciding whether someone is entitled to minimum wage or overtime under the federal Fair Labor Standards Act (FLSA). Here is a common mistake made by Houston, Sugar Land and Stafford TX employers concerning their employees being mistaken for independent contractors: Houston Employers often think: We Don’t Have Employees, We Have Independent Contractors.

Independent contractors are not entitled to minimum wage or overtime compensation. However, calling someone an independent contractor does not by itself mean they are an independent contractor. Some of the factors courts will look at when determining whether someone is an employee or an independent contractor are:

  1. The extent to which the worker’s services are an integral part of the employer’s business,
  2. The permanency of the relationship,
  3. The nature and degree of control by the business,
  4. The worker’s opportunities for profit and loss, and
  5. The amount of the worker’s investment in facilities and equipment.

Garcia-Martin & Martin, P.C., is a business and employment law firm located in Stafford, Texas. Their attorneys work with businesses and individuals in all types of business and employment matters throughout the Houston, Texas area. They can be reached at (281) 277-3066. You may also visit their website at www.mgmartinlaw.com for additional information and practice areas.

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