Employment
7 min read
Employee or independent contractor? A U.S. classification checklist
Why a contract label is not decisive, which federal factors matter, and what businesses should document.
Overview
Why a contract label is not decisive, which federal factors matter, and what businesses should document.
What to review
- Who controls schedule, price, method, supervision, and work for others?
- Does the worker make entrepreneurial investments and face profit or loss?
- Is the relationship indefinite and the work central to the business?
- What benefits, tools, expenses, taxes, IP, and termination rights apply?
What to do next
Different wage, tax, state, unemployment, workers’ compensation, and benefits rules may use different tests. Reassess when the role changes and obtain advice if the facts are mixed.
Official sources and further reading
- Fact Sheet 13: Employee or Independent Contractor Classification Under the FLSA — U.S. Department of Labor
- Worker Classification 101: Employee or Independent Contractor — Internal Revenue Service
This article provides general educational information and is not legal advice. Rules and outcomes depend on your facts and jurisdiction. Consult a qualified local professional before acting.
Jurisdiction
United States federal law; state tests may differ
Review status
Editorially reviewed by the LegalGPT Editorial Team. Not independently reviewed by a licensed attorney.
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