Worker classification is often a misunderstood area. Many employers wrongly classify employees by mistake and some do it on purpose.

Incorrect worker classification costs everyone. Employers could face severe penalties, and you can end up losing out on benefits. For this reason, each state sets its own guidelines employers must follow to properly classify workers.

Three elements

The Texas Workforce Commission explains there are three essential elements your employer should consider when classifying you. It gives employers a range of questions to answer to help them make their decision with the questions addressing each element: service, wages and control.

Aspects to consider

Some of the things that your employer will need to think about include your training and work schedule. As an employee, your employer should provide you with the training you need to do your job. Also, you should expect your employer to provide a schedule and tell you when and where to work.

Oversight is another area to consider. Your employer should oversee your work if you are an employee, but if you have the freedom to work without oversight and supervision, then you could be an independent contractor.

Employees generally receive a regular paycheck based on hours or a salary. Employment is continuous and assumed to continue until one of you wishes it to end. Your employer covers the expenses for the equipment and tools you need to work when you are an employee.

As an employee, you should expect that your employer monitors your work and expects to be able to get reports on it. Your employer also has the right to expect you to prioritize it and always be available to work your agreed-upon schedule.