Maryland’s Workplace Fraud Act (WFA) prohibits employers from designating certain employees as “independent contractors” in order to avoid their obligation to pay taxes and provide workers’ compensation and other benefits that employees are entitled to under law.

In an employment situation where the employer controls the manner and method by which a worker accomplishes their tasks or duties, the worker should be considered an employee. Is the employee hired to produce a completed product or are they paid for the process of completing the product? Does the employer dictate the hours of work or other aspects of accomplishing the task?

This has become such a widespread problem that, although the WFA relates to construction, landscaping and home health industries, there are many other workers who are denied workers’ compensation, unemployment benefits, health insurance and other things associated with employment.

There may be times when an employer employs permanent employees as well as some temporary workers, calling them independent contractors. The fact that someone is hired on a temporary basis does not make that individual an independent contractor.

Workers may contact the DLLR or this office for more information or to find out if you have been cheated out of your employee rights.