What Are My Rights as an Independent Contractor in Florida?

Working as an independent contractor in Florida offers freedom and flexibility, but it also comes with responsibilities and challenges. Understanding your rights and obligations is key to protecting yourself in these working relationships.

At The Leach Firm, P.A., we’ve been advocating for workers across Florida and Georgia since 2004.  Let’s break down what you need to know about your rights as an independent contractor in Florida.

Defining Independent Contractors in Florida

The first step in understanding your rights is knowing what sets independent contractors apart from traditional employees. In Florida, the distinction mainly comes down to the level of control the employer has over how the work is done.

The “Right of Control” Test

Florida uses the “right of control” test to determine whether a worker is a freelancer or an employee. This test looks at how much control the employer has over the work being done.

If the employer dictates not just what work is to be done but also how it should be done, the worker is more likely to be classified as an employee.

On the other hand, if the worker has the freedom to decide how to complete the tasks and operate independently, they are generally considered an independent contractor.

Separating Independent Contractors from Employees

Several factors are considered when determining whether you’re an independent contractor or an employee in Florida. These include:

• Control over Work: Do you decide how, when, and where to perform the work? If you are free to set your schedule, choose your methods, and use your tools or equipment, you’re more likely to be classified as an independent contractor.
• Nature of Services: Is the work you do part of the company’s core business? If the services you provide are integral to the company’s primary operations, there’s a higher chance you could be classified as an employee.
• Financial Aspects: How you’re paid—whether by the hour or per job—also plays a role. Independent contractors are usually paid by the job, not by the hour, and often provide necessary tools and equipment.
• Relationship: The length and nature of your working relationship with the company also matter. A long-term, ongoing relationship might suggest an employment relationship, while a project-based, short-term relationship typically indicates an independent contractor status.

Rights and Responsibilities of Independent Contractors

As an independent contractor, you have certain rights, but you also have responsibilities that differ significantly from those of an employee. Understanding these can help you protect yourself and your business.

Tax Implications

One major difference between employees and independent contractors is how taxes are handled. As an independent contractor, you’re responsible for paying your taxes, including self-employment taxes, which cover Social Security and Medicare.

Unlike employees who have these taxes withheld by their employer, you’ll need to set aside money from your earnings to cover these taxes and make quarterly estimated tax payments to the IRS.

No Employee Benefits

Independent contractors do not receive employee benefits such as health insurance, paid time off, or unemployment benefits.

This means that you’re responsible for securing your health insurance and saving for periods when you’re not working. It’s important to factor these costs into your pricing when you’re setting your rates for your services.

Limited Legal Protections

Another key difference is that independent contractors aren’t protected by many of the employment laws that apply to employees. For instance, minimum wage and overtime laws typically don’t apply to independent contractors.

You also aren’t covered by anti-discrimination laws in the same way employees are, and you won’t have access to unemployment benefits if you lose your work.  You must have a well-drafted contract that outlines your rights and obligations.

Misclassification: A Serious Issue

Misclassification of workers is a common problem and can have serious consequences for both employers and workers. If you’ve been misclassified as an independent contractor when you should be an employee, you’re likely losing important benefits and legal protections.

Consequences for Employers

Employers who misclassify employees as independent contractors can face significant penalties. This can include back taxes, fines, and even legal action.

In Florida, intentional misclassification can lead to felony charges. The IRS and Department of Labor also have the authority to audit companies and reclassify workers,  resulting in hefty penalties for the employer.

Implications for Workers

If you’ve been misclassified as a contractor, you might be missing out on benefits like health insurance, workers’ compensation, unemployment insurance, and protection under employment laws.

Misclassification can also mean that you’re paying more in taxes than you should be, as employers are required to pay half of your Social Security and Medicare taxes if you’re classified as an employee.

If you believe you’ve been misclassified, it’s important to seek legal advice to explore your options.

The Right to Proper Classification

Workers have the right to be classified correctly, and if you believe you’ve been misclassified, you can challenge this ruling. Doing so can potentially recover lost benefits and ensure you’re protected under the appropriate employment laws.

Industry-Specific Laws and Federal Guidelines

Some industries are more prone to classification issues than others. It’s important to understand how these specific situations might affect your rights as an independent contractor in Florida.

Industry Examples

The construction industry in Florida is highly regulated, and the CILB has specific rules regarding the classification of workers as employees or independent contractors.

Federal Influence

While Florida has state laws governing independent contractors, federal guidelines from agencies like the IRS and the Department of Labor also influence how worker classification is determined.

The IRS, for example, uses its own set of criteria to assess whether a worker is an independent contractor or an employee. These criteria are similar to the “right of control” test used in Florida but also take into account the financial and relational aspects of the working arrangement.

Protect Your Rights, Contact Us

Handling the complexities of independent contractor status can be challenging, but you don’t have to do it alone.

If you’re concerned about your status as an independent contractor or believe you’ve been misclassified, The Leach Firm, P.A. can help. Contact us today for a confidential consultation (844)-722-7567. Let us fight to protect your rights and your livelihood.