Do 1099 Contractors Get Overtime?
If your employer is not paying you your proper wages or overtime, contact 1099 overtime lawyer, Travis Hedgpeth, today for a free case evaluation.
Companies and organizations rely on either employees or 1099 contractors to perform specific tasks. It is worth understanding the overtime rules that apply to the two types of service providers.
A 1099 worker, also known as an independent contractor, provides an entity’s services as a non-employee. Independent contractors use a 1099 tax form rather than a W-2. Unlike W-2 employees whose payroll taxes are deducted from their paychecks by an employer, 1099 contractors file taxes independently.
The Fair Labor Standards Act (FLSA) treats contractors as self-employed people. Since the FLSA minimum wage and overtime requirements apply only to employees, it means 1099 workers are exempted from getting compensated for the over 40 hours in a workweek.
Unfortunately, the 1099 overtime law is not clear cut. Many employers make a mistake of misclassifying their employees as 1099 contractors. Others will intentionally misclassify workers to avoid paying additional money for overtime work.
Ways to Know You Have Been Potentially Misclassified As a 1099 Contractor
There is a high chance you are misclassified as a contractor if:
· You do not have the right to determine the time and place of work
· You work under the strict control of the employer
· You cannot delegate tasks
· An employer invests in all the tools and equipment needed for the job
· You receive employment benefits, such as health insurance
· You are eligible for workers’ compensation benefits
· You receive training from the company
· You are a service provider to only one employer.
Know the FLSA Rules and Your Rights
Keep in mind that the FLSA does not cover all employees. Only non-exempt employees misclassified as 1099 contractors are eligible to claim unpaid overtime. Generally, an employee may qualify for overtime if they perform non-administrative and executive tasks and earn less than $684 per week ($35,568 annually).
If you are sure an employer has committed illegal worker misclassification, don’t be afraid to lodge a claim. The Department of Labor has enforced rules to protect employees like you from companies, which punish their workers for claiming unpaid overtime.
In most cases, filing a complaint with the HR department or boss can solve the issue. If they deny your claim, hopefully not, your next option is to fight them in court.