From the Dolman Law Group, Matthew Dolman discusses independent contractors in the trucking industry and provides guidance for independent contractors in Florida. Matthew writes:
Florida Wage and Hour
Florida’s current minimum wage is $8.05. For overtime and exemption policies, Florida follows the Fair Labor Standards Act (FLSA) drafted by the government that classifies two groups of employees for the purpose of wage and overtime purposes. The two classifications are exempt employees and non-exempt employees. The FLSA minimum wage and overtime requirements apply differently to employees depending on how they are classified. It is also important to note that the FLSA standards may not be the only legal standards that apply to employers and employees regarding minimum wage, overtime and child labor .
Based on the lawsuits above, it’s essential for individuals to know exactly was an independent contractor is for the state of Florida. In order for an individual to qualify as an independent contractor and therefore not an employee, they must meet at least four of the following criteria:
- Maintains a separate business with his or her own work facility, truck, equipment, materials, or similar accommodations;
- Holds or has applied for a federal employer identification number, unless the independent contractor is a sole proprietor who is not required to obtain a federal employer identification number under state or federal regulations;
- Receives compensations for services rendered or work performed and such compensation is paid to a business rather than to an individual;
- Hold open or more bank accounts in the name of the business entity for the purposes of paying business expenses or other expenses related to the services rendered or work performed for compensation;
- Performs work or is able to perform work for any entity in addition to or besides the employer at his or her own elections without the necessity of completing an employment application or process; or
- Receives compensation for work or services rendered on a competitive-bid basis or completion of a task or set of tasks as defined by a contractual agreement, unless such contractual agreement expressly states that an employment relationship exits.
However, even if four of the criteria listed above do not exist, an individual may still be presumed to be an independent contractor and not an employee based on full consideration of the nature of the individual situation with regard to satisfying:
- Performs or agrees to perform specific services or work for a specific amount of money and controls the means of performing the services or work.
- Incurs the principle expenses related to the service or work that he or she performs or agrees to perform.
- Is responsible for the satisfactory completion of the work or services that he or she perform or agrees to perform.
- Receives compensation for the work or services performed for a commission or on a per-job basis and not on any other basis.
- May realize a profit or suffer a loss in connection with performing work or services.
- Has continuing or recurring business liabilities or obligations.
- Success or failure of the independent contractor’s business depends on the relationship of business receipts to expenditures .
Read the full story at Independent Contractors & Misclassification In The Trucking Industry