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Know the Main Employment Types to Stay Protected

There is a pile of different job titles representing the various employment types that exist. In today’s complex business world, there are many classifications of employment status. Employers use different options for their workforce to employ the right person for the right job at the right time for the right extent of time. Organizations can adjust to varying demands of the market based on season or shifts in consumer needs or wants. Understanding the difference between the types of employment agreement statuses is important for businesses, so they don’t violate the law and workers, so they fully understand the expectations of a work agreement.

Different classifications offer different pay and benefits for workers. There may be differences based on state codes. For this guide, we will go through the major worker classifications and what each means for you as a worker. 

Employees

This first group will all be under the classification of “employee.” We’ll go through the subsections cases below. 

Full-Time Employee

Employees within this classification work the standard full-time amount of hours per week. Specifically, these workers will have 30-40 hour work weeks. This weekly amount extends to 130 hours per calendar month. The Fair Labor Standards Act (FLSA) allows individual organizations to come up with unique definitions of a full-time employee. The government considers all employers whose workforce is more than 49 full-time staff members to be an Applicable Large Employer (ALE). Any ALE organization must offer health care coverage to their full-time staff.

Part-Time Employees

Employees are considered part-time if they work fewer than 30 hours in any given week. Part-time employees typically do not receive benefits. Employers need to pay taxes for these employees at the same rate as for full-time staffers. 

Temporary Employees

Some projects require additional hands for short periods. An employer may hire workers to work on a set project for a set amount of time. If the company hires them, they will need to pay them directly and withhold taxes from their payments. Reminder: temporary staffers can file for Social Security and unemployment benefits. 

Seasonal Employees

The mad rush of holidays or other peak seasons require extra workers. Organizations will hire these workers for short periods to handle the additional strain of customer demand. Employers will need to certify labor documents verifying the worker’s ability to legally work in the U.S. Similar to temporary employees, seasonal workers can apply for Social Security and unemployment benefits. 

Contingent Workers

The following are not employees of a company or organization for which they do work. Instead, they often work for themselves or outside agencies that partner with the organization that needs support. 

Independent Contractors

Many workers who do work for an organization are not employed by that organization. Instead, the workers have contracted work with the organization. Contract workers will need to pay the Self-Employment Tax if they make over $400 in a year.

Freelancers

Freelance is similar to independent contractors. This group of contractors typically involves mostly creatives, including artists, photographers, and writers. 

Consultants

This group of workers will usually assess a client’s organization in a large or specific manner, then provide industry-specific advice. Usually, the worker will not do the work. However, there are cases where the consultant will provide advice and perform the work. 

Understanding Your Rights as a Worker

When you understand your work classification, you will have a better grasp of what an organization expects of you. With expectations written and share between the employer and the worker, there will be fewer problems. If you believe your rights have been broken, contact a competent attorney to defend you like those at Pitt, McGehee, Palmer, & Rivers. Our staff defends the rights of workers against discrimination, civil rights violations, wage mishandling, and more.

Give our attorneys at Pitt, McGehee, Palmer, & Rivers a call today at (248) 939-5081 to talk through your issue. 

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