ELI5: Explain Like I'm 5

Misclassification of employees as independent contractors

Okay, kiddo, you know when you go to school and your teacher tells you what to do and you follow their rules, right? Well, that's kind of like a regular employee. They work for someone else and have to do what their boss says.

But sometimes, someone is called an independent contractor. This means they work for themselves and get paid by someone else to do a job. Like if you wanted to sell lemonade and your neighbor paid you to make some for them, you'd be an independent contractor.

Now, sometimes, bosses might say someone is an independent contractor, but really they should be an employee. This means they should follow the boss's rules and get protected by certain work laws. But if someone is misclassified as an independent contractor, they might miss out on these protections and benefits, like paid time off and being able to join a union.

So it's important for bosses to make sure they're following the rules and not just calling someone an independent contractor to save money, and for workers to make sure they know their rights and are being treated fairly.
Related topics others have asked about: