Is there a minimum wage for independent contractors?

Independent contractors are not entitled to the minimum wage because, even though they do work for a company, they are not legally considered employees of that company. Independent contractors—such as consultants and freelancers—work for hire.

Is it legal to pay employees different wages for the same job?

Specifically the EPA provides that employers may not pay unequal wages to men and women who perform jobs that require substantially equal skill, effort and responsibility, and that are performed under similar working conditions within the same establishment.

What is federal minimum wage?

$7.25 per hour
What is the federal minimum wage? The federal minimum wage is $7.25 per hour. Though tipped workers and some farm and seasonal workers are paid less in many states, pay for the vast majority of hourly employees in the U.S. is at least $7.25 per hour.

What qualifies as a 1099 employee?

1099 Worker Defined A 1099 worker is one that is not considered an “employee.” Rather, this type of worker is usually referred to as a freelancer, independent contractor or other self-employed worker that completes particular jobs or assignments. Since they’re not deemed employees, you don’t pay them wages or a salary.

Who get in trouble for paying employees under the table?

By paying employees under the table, employers effectively avoid paying taxes. Depending on whether the conduct was “willful” (intentional) and other factors, this may constitute employment tax evasion, which is a form of tax fraud – and a serious criminal offense.

What is federal minimum wage mean?

A minimum wage is the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor. Supporters of the minimum wage say it increases the standard of living of workers, reduces poverty, reduces inequality, and boosts morale.

What are the three defenses for paying a different wage?

individual makes each of these showings, the defendant employer may avoid liability by proving that the wage disparity is justified by one of four affirmative defenses—that is, that the employer has set the challenged wages pursuant to “(1) a seniority system; (2) a merit system; (3) a system which measures earnings by …