The attorneys at Lebau & Neuworth have been busy fighting for the rights of employees in Maryland. Recently, Lebau & Neuworth settled a case for two workers who were misclassified as 1099 independent contractors by a major food distribution company. The case alleged that the workers were employees and not 1099 independent contractors and were therefore owed the required minimum wage as required by the Maryland Wage and Hour Law and the Fair Labor Standards Act. The attorneys at Lebau & Neuworth fought for the employees and negotiated a very favorable settlement on their behalf.
Independent Contractors differ from employees. According to publications of the Maryland Division of Labor and Industry of Maryland’s Department of Labor, there are two kinds of workers under Maryland’s employment laws: employees and independent contractors. Independent contractors work in business for themselves, while employees do not. In Maryland, the main difference is that independent contractors have more autonomy over their work, while employees are paid a wage or salary and work for an employer.
An employee is generally defined as someone who works for an employer for a wage or salary, or in a managerial or supervisory capacity. Independent contractors typically have more control over their work hours and use their own tools and equipment, as opposed to employer-provided labor materials which would be the case for employees. Independent contractors are not eligible for workers' compensation benefits. They are responsible for their own taxes, while employers withhold taxes from employees' paychecks.
Maryland uses a fact-specific test to determine if a worker is an independent contractor. The test considers factors such as the worker's rights and responsibilities, the degree of control each party has over the other, whether the worker owns their own business, and if the worker performs duties beyond the company's general scope. Employers who intentionally misclassify workers to avoid paying taxes and benefits can face fines and other penalties.
Under the Maryland Wage and Hour Law and the Fair Labor Standards Act, employees are entitled to a required minimum hourly wage rate. In Maryland, the minimum wage is currently $15 per hour for all employers, except in Montgomery and Howard Counties, where minimum wage rates differ. In Montgomery County, the minimum wage rates currently are:
In Howard County, the minimum wage rates currently are:
The federal Fair Labor Standards Act legally requires employers to pay minimum wage in Maryland. Our priority is to uphold justice under the law to protect workers. If you or someone you know needs legal support, please visit lebauneuworth.com or contact us at (410) 296-3030 to discuss your concerns.
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