An individual who works for another may be either an employee or an independent contractor. While a contracting arrangement can be a legitimate alternative to taking on a worker as an employee, a company might misclassify employees as contractors to avoid certain legal obligations. These include minimum wage and overtime pay requirements as well as unemployment and workers’ compensation insurance. If you believe you have been misclassified, there may be options available to you under Connecticut law.

Like many other states and the federal government, Connecticut utilizes the “ABC test” in determining whether an individual is an employee or contractor. There is a presumption that a worker is an employee unless all of these parts of the test are satisfied:

• Absence of direction and control — Employers exercise a measure of supervision over employees. They dictate location, working hours and process flows and routinely give employees direction on work-related matters. In contrast, independent contractors have much greater autonomy. Contractors tend to complete their assignments with little oversight or direction from the hiring company. While the company may impose requirements as to work quality, deadlines and other aspects of performance, the contractor usually has discretion about how work gets done.
• Services outside the course of business — In general, a company hires employees to perform tasks that are directly related to the company’s ordinary business operations. For example, a car manufacturer has direct employees working on the assembly line. In contrast, contractors often fulfill requirements outside the primary functions of the business. If there is a plumbing problem at an automobile plant, the company likely would hire an outside contractor for repairs. In addition, the company might hire independent contractors for machine maintenance.
• Being “customarily engaged” in an independent business — An independent contractor in essence runs a business and the hiring company is just a customer. This element of the test is the most problematic and is often at issue when contests to worker classification arise. The more captive a worker is to a single company and job function, the more likely he or she would be considered an employee.

In analyzing the third part of the ABC test, courts look at the totality of the circumstances, considering such factors as whether the worker holds himself or herself out to the commercial marketplace as a contractor available on an as needed basis, has an independent business organization, has more than one customer and maintains separate business insurance.

The employer has the burden of proving it has met the ABC test. If you suspect that the company you work for is improperly classifying you as an independent contractor, an experienced employment lawyer can analyze your situation and your possible entitlement to legal relief.

Gesmonde, Pietrosimone & Sgrignari, L.L.C. in Hamden and East Haven represents Connecticut residents in a wide range of labor and employment matters. Contact us online or call 203-745-0942 for a free initial consultation.