Maryland Independent Contractor and Employee Benefits
When employers misclassify their employees as independent contractors, these employees miss out on several benefits, including minimum wage and overtime pay, unemployment benefits, workers’ compensation benefits, social security contributions, and tax withholding at both the state and federal levels.
Employers sometimes misclassify their employees inadvertently. In other cases, however, employers misclassify their employees intentionally, in order to avoid paying certain taxes and paying benefits to their workers.
If you believe that your employer has denied you the benefits that you deserve, you should contact a Maryland independent contractor and benefits lawyer as soon as possible. A seasoned independent contractor attorney could help you understand your rights and what benefits you could recover.
Employees vs. Independent Contractors
In Maryland, the law presumes that workers are employees, and the burden is on the employer to prove otherwise. In general, independent contractors have more autonomy over their work hours than employees do. They also typically use their own tools and equipment and own their own businesses.
Overtime Benefits
Hourly employees are generally entitled to overtime benefits for any hours they work above 40 in a given workweek. Independent contractors, because they are not employees, cannot receive these benefits.
Unemployment Benefits
Employees who have lost their jobs may be entitled to receive unemployment benefits. The Division of Unemployment Insurance cannot determine a worker’s eligibility for unemployment benefits until after the employee files an application.
The State pays out unemployment benefits on a weekly basis. These benefits can range from a low of $50 to a high of $430.
During the time that a worker receives unemployment benefits, they must meet certain requirements in order to remain eligible for the benefits. For example, they must actively continue their search for new employment.
Workers in Maryland who are independent contractors are not entitled to unemployment benefits if their contract expires or the company or individual who hired them lets them go.
Workers’ Compensation Benefits
Maryland workers’ compensation benefits are available to employees who sustain injuries while on the job. In order for an employee to be eligible for these benefits, the following must be true:
- The employee must have sustained their injury or injuries while they were actively working at their job.
- The employee must have sustained their injury or injuries while they were working within the scope of their employment.
Employees who are eligible for workers’ compensation benefits may receive compensation for all of their related medical treatment, as well as a portion of their lost wages. They may also recover benefits for vocational rehabilitation and training, in some cases, as well as permanent disability benefits.
Independent contractors, unlike employees, are not eligible to recover workers’ compensation benefits in Maryland.
Talk to a Maryland Independent Contractor and Employee Benefits Attorney Today
Employee status in Maryland comes with many perks. When employers intentionally misclassify their workers in an attempt to avoid paying taxes and paying benefits to their employees, they can incur fines and other serious penalties.
If you believe that your employer has withheld certain employee benefits from you, including overtime benefits, unemployment benefits, or workers’ compensation benefits, you should contact an employment attorney as soon as possible.
An experienced Maryland independent contractor and employee benefits lawyer could explain your legal rights and may be able to pursue missed benefits on your behalf.
