Employee or independent contractor?
Whether a worker is an employee or an independent contractor affects minimum wage, overtime, taxes and benefits. Employers are responsible for classifying workers correctly. The Department of Labor and the IRS each publish guidance, and states may use different tests.
What is misclassification?
Treating a worker who is legally an employee as an independent contractor, which can mean missing minimum wage, overtime and other protections.
Does a 1099 or a contract decide it?
No. The actual working relationship matters, not just the label or tax form.
Where are the official tests?
The Department of Labor's misclassification page and the IRS's independent contractor page.
Official sources to check
This page is general information, not legal advice. Laws change and differ by state and city. Last reviewed October 2026. How answers are made
Have a question about your situation?
Ask it anonymously and get a free general answer in seconds, or a detailed answer on the rules that may apply where you work for $1.99.