Bartz Law Group

Employee Rights Advocates

5 Employee Classification Types and How They Compare

Employee Classification Types and How They Compare

California workers should be classified according to the provisions of employment laws in California and the Fair Labor Standards Act (FLSA). In other words, these two laws should determine employee benefits.

I’m sure you’ve heard the terms “full-time” and “part-time” employees, which are common types of employment contacts. However, there are more types of employment contracts and they are all governed by employment laws in California.

Common Types of Employee Classification

The following are some of the employee classifications you will encounter while applying for a job.

1. Full-time Employees

Full-time employees should work for a minimum of hours in a week or month, and they are paid a salary that remains constant. To be classified as a full-time employee, you must work a minimum of 8 hours a week or 40 hours a month. Additionally, such employees also get other benefits, such as healthcare coverage, 401(k), and employment leaves that accrue over time.

2. Part-time Employees

Part-time employees typically work less than 30 hours per week, and they’re paid on an hourly basis. In most cases, part-time employees decide the number of hours they work and that’s why they’re able to work two or more jobs. Part-time employees can gain experience in multiple fields because the nature of their work allows them to work in different industries.

 Examples of industries that hire part-time employees include retail, food service, sales associates, warehouses, and others. Part-time employees are typically classified as “non-exempt” and should receive all the benefits recommended by the FLSA.

3. Contract Employees

Contract employees are usually hired to meet the production targets of a company. The terms of their contacts can vary by industry and job. Working hours for contract employees are not limited to 40 hours a week. One advantage of contract employees is that they can renew or the fact that you fail to renew the contacts as they wish. Contract jobs are ideal for sales, IT professionals, and construction employees. Contract employees are considered nonexempt and qualify for FLSA benefits.

4. Independent Contractors

Independent contractors typically work as contract employees but do not appear on a company’s payroll. The flexibility of working as an independent contractor comes with the freedom of building a unique schedule and completing projects at a reasonable pace.

This employment arrangement is ideal for freelancers, rideshare drivers, and food delivery employees. Independent contractors are employees of the company they work for, meaning they do not receive FLSA and company benefits.

5. Temporary Employees

Temporary employees are also called short-term workers because they’re hired on a short-term basis. These types of workers are mostly hired to cover full-time employees who are absent for some time. Temporary work is ideal for people looking for extra work but for short periods.

These jobs are ideal for retail workers, administrators, housekeepers, and more. Temporary employees are considered non-exempt employees because they earn less than $35,568 annually and they receive hourly pay.

Your employment contract falls into the above-discussed categories. That said, you should seek the help of an employment attorney to help you know your employment status.