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How does being an independent contractor affect you?

On Behalf of | Jan 26, 2023 | employment contracts |

Employee classification is often a hot-button issue, and it remains an important topic to discuss. When employers hire independent contractors, there is allegedly more freedom on both ends as to how each party pursues a business contract.

However, if you classify as an employee and your employer pays you like an independent contractor, you may find your labor compensated unfairly.

Pennsylvania’s take on employee classification

According to the Office of Unemployment Compensation, you are an employee until proven otherwise. An independent contractor is free from control or direction and engaged in an independently established trade.

Contracts and agreements

Much of a contractor’s business revolves around specific contracts for specific services. While this may mean a long-term stay, it may also mean bouncing from project to project. Your employer does not have to worry about a W2 form or deducting taxes from your paycheck. They may also have a harder time enforcing agreements like non-competes.

Non-competes and independent contractors

Pennsylvania does not have any statute prohibiting employers from having independent contractors sign non-competes. However, due to the nature of these agreements, this may qualify as exerting a certain amount of control — reclassifying you as an employee rather than an independent contractor.

This topic can get messy, and it is important to identify whether an employer has misclassified you or wrongfully exerted control over your labor. When navigating this, it is important to learn more about your unique case and about the options at your disposal for seeking the fairest contracts and agreements.