Being called an "independent contractor" and getting a 1099 doesn't make it legally true. Courts and agencies look at the actual working relationship - not the label. This screener walks through the tests used to determine your real classification and what it means for the pay, benefits, and protections you may be owed.
An employment attorney applies the exact legal test for your state and claim type to determine your true classification and calculate what you may be owed in unpaid overtime, benefits, or unemployment contributions. Many attorneys work on contingency.
No single nationwide test applies to every situation - the test depends on which law is at issue and which state you're in. The IRS uses a "right to control" test focused on behavioral control, financial control, and the relationship type. The Department of Labor under the FLSA uses an "economic realities" test asking whether the worker is economically dependent on the business or in business for themselves.
Many states, including California, use a stricter "ABC test" that presumes a worker is an employee unless the business proves all 3 conditions: the worker is free from control and direction, the work is outside the usual course of the business, and the worker is customarily engaged in an independently established business of the same type.
The ABC test's second prong is particularly powerful - if you're doing the same type of work as the company's core business (a delivery driver for a delivery company, a driver for a rideshare company), that alone can defeat the employer's independent contractor classification in ABC-test states. Check the wage theft calculator to estimate what you may be owed if reclassified as an employee.
Behavioral control indicators: the company sets your schedule, dictates how the work must be performed (not just the end result), provides training, requires you to use specific methods or tools, and supervises your work closely.
Financial control indicators: the company provides your equipment and supplies, reimburses your business expenses, pays you a regular wage or salary rather than a per-project fee, and you have no meaningful opportunity for profit or loss based on your own management skill.
Relationship indicators: you receive employee-type benefits, the relationship is expected to be indefinite rather than project-based, and the work you perform is a key part of the company's regular business - not a peripheral service.
Misclassified workers are typically denied: overtime pay for hours over 40/week, minimum wage protections, unemployment insurance eligibility if let go, workers' compensation coverage if injured on the job, employer-provided health insurance and retirement benefits, protection under anti-discrimination and family/medical leave laws, and the employer's share of Social Security and Medicare taxes (contractors pay both the employee and employer share themselves through self-employment tax).
This makes misclassification financially significant even beyond any single paycheck - it affects your safety net, tax burden, and legal protections across your entire working relationship with the company.