Ohio Independent Contractor Law

Sep 30, 2021
By Peter Friedmann

There are some conflicts between Ohio laws for independent contractors and the protections afforded by the Fair Labor Standards Act (FLSA). For example, independent contractors in Ohio are exempt from certain protections of the FLSA, like minimum wage and overtime regulations. To determine what standards apply to you, you must determine whether you are an employee under the FLSA or an independent contractor subject to Ohio laws.

Ohio Independent Contractor Law – Classifying An Independent Contractor

It is extremely helpful to understand the difference between a standard employer/employee relationship and the elements that create an independent contractor. The status of your employment as an employee or an independent contractor will affect what laws apply to your employment.

An employer/employee relationship, according to the FLSA, “must be distinguished from a strictly contractual one.” There is no singular rule or test that determines if someone is an independent contractor or an employee. However, some of the factors that the U.S. Supreme Court consider significant in determining if someone is an employee or an independent contractor include:

  • The degree of independent business organization and operation of the independent contractor/employee;
  • The overall permanency of the relationship between individuals;
  • The alleged contractor’s investment in facilities and equipment, if any;
  • The general extent to which the services provided are an integral part of the business; and
  • The amount of control the employer/business has over the independent contractor/employee.

Essentially, an independent contractor is “engaged in a business of his or her own.” These factors will vary for each individual. According to the Ohio Department of Job and Family Services, an independent contractor is someone who is “under contract to perform a special service for an employer.” In the case of things like unemployment insurance tax reporting for Ohio independent contractor law, you as an independent contractor are excluded from things such as being able to claim unemployment insurance. Additionally, an independent contractor’s employment usually has a set term and is not considered indefinite.

For further questions on how to determine whether you are subject to FLSA or independent contractor laws, please contact the Friedmann Firm LLC for a free consultation.

The Friedmann Firm LLC is based in Columbus, Ohio and their independent contractor lawyers offer free and confidential consultations. You can get in contact with an independent contractor lawyer online or at 614-610-9755.