This post is an excerpt from FLSA/Wage and Hour Crackdown
by Michael Shultz, Esq.
Businesses frequently employ independent contractors to perform work for them. The law does not require an employer to pay minimum wage or overtime to persons who are independent contractors. For example, a software company might hire an independent company to perform janitorial services or lawn maintenance services. Sometimes these independent companies will be no more than a couple of people who have come together to form a small business for themselves. Sometimes, the purported independent contractor might be an individual.
Generally, no one will question whether an established lawn maintenance or janitorial services company is an independent contractor; but, when the independent contractor is one or a few individuals, the question of employee versus independent becomes a real problem.