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How independent contractors are ripped off by employers

Freelancers and independent contract workers of all kinds are at risk for being low-balled by employers seeking their services. Oftentimes, employers are inclined to blur the lines between what is legally acceptable or completely disregard the law altogether. From a financial point of view, it is in the best interest of an employer to spend as little as possible to pocket the most in profits.

Too often hard-working individuals are signed into contracts that put them at a disadvantage in the long run. The freedom involved in being a freelancer and not having to request time off or be at the mercy of direct employment also has a downside. Many workers feel unfairly treated with regards to wages, benefits and more.

Independent contractor or employee?

When an employer mis-classifies their worker as an “independent contractor”, they avoid the responsibility of having a direct employee on file. Many places of employment will hire a contract worker, yet demand work from them as if they were an employee. Freelancers who are unaware of their rights may be working overtime hours without fair compensation.

Also, some contract workers may be told to work with the same constraints as regular employees. However, they are unfairly dismissed from their job due to any factor that employers view as a hindrance to production. The IRS defines what an “independent contractor” is to clarify the confusion. You should know how the IRS classifies your position before you sign any contract with a potential employer seeking your services.

No benefits for freelancers

Many freelancers find themselves with the short-end of the stick when they are employed long-term in a position, without any access to benefits for rendering their services. Healthcare, days off, paternity leave are all out of reach for most contract workers. Employers benefit from not having to offer these to contract workers, but the law places limits on employers to protect independent contractors from exploitation.

If you are an independent contractor, it is essential that you do your research and know your rights. Do not expect the employer you are working for to have your best interest at heart. Many hard-working individuals are ripped off from the wages and benefits they deserve due to ignorance. You can fight back with legal action and turn your circumstances around.

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