Employee vs. Independent Contractor. Employee is: paid hourly or by salary, uses employer's materials, works for one employer, continuing relationship, employer decides manner and means of performing, employer determines work performed. Contractor: paid upon completion, provides own materials, works for multiple clients, temporary relationship, contractor decides means of performing, contractor and client agree to project scope

A worker is entitled to minimum wage and overtime pay protections under the Fair Labor Standards Act (FLSA) when there is an employment relationship between the worker and an employer and there is coverage under the FLSA. The Wage and Hour Division is responsible for determining whether an employee has been misclassified as an independent contractor and has been denied critical benefits and labor standards protections.