Paying less than minimum wage
If you’re a freelancer, independent contractor, salaried or commissioned worker or have a tip-based job, the person or company hiring your services can offer you less than minimum wage without being required by law to pay you otherwise.
On the other hand, if your job does not fall in any of the categories above, your employer has to pay you either the federal or state minimum wage, whichever is higher. If you get paid less than that, your employer commits an illegality, and you can take legal action against them.
Read also: 6 Career Mistakes You’d Want to Avoid During a Recession
Classifying part-time work as full-time
Whether you’re a teacher, a janitor or an engineer, being an independent contractor can bring you lots of benefits. But when employers monopolize more than 40 hours of your time and their records show you as an independent contractor, not only are you not independent but they’re doing it to dodge Social Security, Medicare, and unemployment insurance taxes.
According to the Government Accountability Office, job misclassification amounts to $3 billion a year from the federal Treasury’s money. Not to mention money that would otherwise go to benefits, unemployment, and other protections for workers.
