As temperatures and gas prices climb, many Indiana residents are taking to the road on their bicycles. Comprised of trails, parks, and the open road, the League of American Bicyclists considers Indiana the 24th most bicycle-friendly state. While bicycling can be great exercise and an enjoyable activity for people of all ages, accidents do happen. Luckily, Indiana law protects bicyclists the same way they protect drivers of motor vehicles. (IC 9-21-11-2) To help you avoid a bicycle accident, here is a list of Indiana Bicycle Regulations that you should know before hitting the road:
Follow the Rules: Bicyclists are required to follow all traffic laws applicable to motor vehicles. Failure to comply can even result in a traffic citation. (IC 9-21-11-2)
Where do I put my stuff?: If your bike has a cargo hold, like a basket or saddle bag, you may transport items inside. You cannot, however, carry any package or item on your bike that requires you to take both hands off the handlebars. (IC 9-21-11-7)
One seat, One Rider: Your bike can only transport the number of people for which it was designed. One seat equals one rider—no passengers on the handlebars. (IC 9-21-11-4)
White Light, Red Light: It’s important to see and be seen. From one half hour after sunset until one half hour before sunrise, the front of your bike must be affixed with a light that allows the road to be visible for 500 feet in front of you. This light must be white. During that same timeframe, the rear of your bike must have a reflector or light visible from a distance of 500 feet. This light/reflector must be red. (IC 9-21-11-9)
Can you hear me now?: This one may surprise you. Bicyclists are required to have a bell or audible device attached to their bike and the sound has to be able to be heard from 100 feet away. But, keep in mind, the device cannot be a whistle or siren. (IC 9-21-11-8)
Your Duty to Care: Motor vehicle drivers and bicyclists alike owe what’s called a duty of care to both pedestrians and other motorists/bicyclists. What this means is motor vehicle drivers are required to watch out for pedestrians and bicyclists, and exercise care to avoid collisions. Bicyclists are required to do the same for motor vehicle drivers and pedestrians. (IC 9-21-8-37)
Now that we know the rules, let’s check out what the Indiana State Police say about staying safe (https://www.in.gov/isp/2969.htm):
Wear a properly fitted helmet every time you ride
Check your bicycle for safety. Use the ABC quick check:
Air – check your tire’s air pressure,
Brakes – check brakes to make sure they work,
Chain – make sure it is tight and oiled
Learn and follow the rules of the road; among the most important is always ride in the same direction as traffic.
Be seen by other road users. Wear bright clothing during the day and wear reflective materials on your body or equipment at night.
Stay alert
Bicycling is a summertime rite of passage, but it can be dangerous. No matter how closely we follow the rules and adhere to safety precautions, bicycle accidents do happen—and the resulting injuries can be catastrophic and expensive. If the actions of a negligent motorist or a defect with your bike have resulted in an injury for you or a loved one, you have rights. Contact Goodin Abernathy, LLP to explore your options.
Spring and summer are the most popular times for first-time home buyers to purchase their first house. It is also a popular time for current homeowners to upgrade or downsize depending upon their needs.
In Indiana, there is no requirement that a lawyer be involved with a real estate purchase. Most of the time there will not be a reason to involve another professional beyond your Realtor, Loan Officer, and Title Company. But what about those times when something does not feel right about the title work, home inspection, or closing documents? What if you are buying the property from via a For-Sale-By-Owner transaction? What exactly are all of the documents you will sign at closing?
At any point during a real estate closing from before signing the purchase agreement through closing, if you are uncomfortable or concerned, do not hesitate to contact Goodin Abernathy, LLP. Purchasing a home is one of the most exciting, but stressful times of a person’s life. We have the experience in resolving conflicts in real estate transactions and can sit down with you to discuss your concerns. Sometimes a simple discussion is needed, other times you may need one of our attorneys to become more involved.
Jim Browne: Hey, welcome to Goodin Abernathy. I’m attorney Jim Browne. We have a new member to our group, Garrett Lewis. He is a young attorney, and I thought we would spend a little time with him so you get to know who he is and what he can do for you. Come on in, Garrett.
Garrett Lewis: Alright, glad to be here Jim.
Jim Browne: Where are you from, Garrett?
Garrett Lewis: So, I’m actually from the South Bend area. I practiced there for a couple years before moving down here.
Jim Browne: What time of law did you focus on?
Garrett Lewis: We did Real Estate; we did Torts, which is contracts, defamation, things like that; and intellectual property, which is sort of copyrights, trademarks and patents.
Jim Browne: Do you have a typical client that you helped with the intellectual property?
Garrett Lewis: Yea, we dealt with small businesses. We had a few global businesses that we worked with and a lot of individual clients with patents and trademarks.
Jim Browne: What about people with inventions?
Garrett Lewis: All, all the time.
Jim Browne: Awesome.
Garrett Lewis: Yea, some that we knew weren’t going to anywhere right out of the gate and some that were very successful.
Jim Browne: That’s great. Where you go to school?
Garrett Lewis: So I went to Purdue and I studied business first, “Boiler up!” And then after that, I went straight from Purdue to Valparaiso for law school.
Jim Browne: I’m happy you joined us, remind me when did you start here?
Garrett Lewis: I started in April of this year.
Jim Browne: Right in the middle of the Covid.
Garrett Lewis: Right in the middle of it, right.
Jim Browne: And what areas of law are you focusing on right now?
Jim Browne: Well, what’s that? I mean is that employment law type of work?/employment-lawyer/discrimination-in-the-workplace/
Garrett Lewis: Yea predominantly. Yep.
Jim Browne: And you are helping clients – individuals with their questions about discrimination? Tell us about that for a second.
Garrett Lewis: Yeah, so it sort of depends – when it comes to the ADA – businesses, for example, have legal obligation to provide reasonable accommodations and….
Jim Browne: so, there are seven core areas – age, race, religion, sexual discrimination, physical disabilities – those are things that you’re focusing on?
Garrett Lewis: Correct
Jim Browne: Great. You’ve already had a jury trial in that area… and what court was it in?
Garrett Lewis: So that was actually in the southern district in the…
Jim Browne: A federal court?
Garrett Lewis: A federal court, yea.
Jim Browne: And that trial, what was it about?
Garrett Lewis: So, that case was about a woman who was working at a grocery store for about 12 years and because of her chronic conditions and disabilities, she needed to be able to use a chair, as necessary.
Jim Browne: And the new employer said “No, you can’t use the chair.”
Garrett Lewis: That’s exactly right.
Jim Browne: So, it’s something probably a pretty easy fix.
Garrett Lewis: It was a very easy fix.
Jim Browne: You had a nice result with that jury trial?
Garrett Lewis: We did.
Jim Browne: You were able to learn some things.
Garrett Lewis: Yes.
Jim Browne: Give me one thing that stood out to you about that process.
Garrett Lewis: Well, first thing is you know maybe as a last resort everybody paid attention on the jury, which was nice – and whereas outside of the courtroom, Covid has sort of made remote working a little bit more convenient, inside the courtroom it’s made it much more of a challenge.
Jim Browne: I understand, so you’re preparing and you’re going to teach us old guys what to do about those technological challenges right?
Garrett Lewis: Yep.
Jim Browne: Well, I’m glad you’re on board Garrett. If you have questions about any of those areas of law please call us at Goodin Abernathy. A lot of your questions can be answered by phone, and we really care about the quality and responsiveness of our work, so please call us at 317-843-2606. You’ll get in touch with whichever attorney probably best suits the area of law you’re looking for, and we appreciate you tuning in to Goodin Abernathy.
It is December 17, 2020, and this week was the beginning of vaccine distribution in the United States.
Many people are asking, “Can the government or my employer require me to get the Covid-19 Vaccine?”
The simple answer is YES, but the likelihood of that happening is going to depend on a lot of factors, and it is not likely that the FEDERAL government would issue such a mandate.
Historically, states have had the right to mandate vaccines in order to ensure safety of the public. However, experts believe that it is very unlikely it will happen.
What is more likely is that employers and states will condition return or access to workplaces, public schools and universities upon getting the vaccine. Currently, all 50 states and Washington DC have laws requiring certain vaccines for students, but there are exceptions for personal, moral or other beliefs.
The industries most likely to mandate vaccines are going to be those most at risk for contracting the disease, such as those who work in HEALTHCARE, EDUCATION, PUBLIC SAFETY. Another important factor will be: AVAILABILITY OF VACCINE.
Currently, the available Coronavirus vaccines have been given Emergency Use Authorization (EUA) by the FDA. By the time the vaccines receive full FDA approval, which could take months. A lot will depend on how widespread the current vaccine has been distributed.
It is not clear if employers could legally mandate a vaccine that is only approved for Emergency Use. However, it would be very unusual to mandate a vaccine that has not been fully licensed and approved by the FDA. Right now, the consensus seems to be to encourage as many people as possible to voluntarily receive the vaccine. Assuming large numbers of people get vaccinated, there is a much less likely chance that there will be mandates by states or employers.
On the other hand, once the vaccine is approved by the FDA, if the number of people vaccinated is still too low to be effective, AND there is an available supply of the vaccine, we should probably expect to see some mandates.
As with any vaccine, there will be exceptions to those mandates; for example: pregnant women, people with disabilities, or those who hold deeply-rooted religious convictions.
So, what does that mean for you? To be vaccinated is a personal decision for each of us. I can tell you that I will be volunteering to get the vaccine as soon as it becomes available, and I look forward to putting an end to this deadly disease.
If you have questions about the vaccine as it relates to your employment, please feel free to contact me, Chip Clark, for a free consultation.
Indiana enacted its first Worker’s Compensation Act in 1915 in response to a growing number of workers injured on the job who had no guaranteed means of receiving medical treatment for injuries or wage replacement income during their physical recovery. Prior to enacting its first Worker’s Compensation Act, when an Indiana worker was injured, the worker was permitted to sue their employer in court in an effort to get compensation. However, lawsuits were time consuming, expensive, and frequently left the injured worker in a position where they were unable to obtain medical attention while their lawsuit was working its way through court because time was lost to address arguments from employers that the worker caused the accident or assumed the risk of the accident. The Workers Compensation Act struck a compromise between the competing interests of the worker and the employer and moved to a no-fault based system. In short, and in general, employers were stripped of the ability to claim the worker caused the accident. In exchange for this concession, injured workers were deprived from collecting pain and suffering or loss of enjoyment of life damages.
In today’s Indiana Worker’s Compensation system, this means when a worker is injured “on the clock” when they slip and fall, or are injured in a car accident, or are injured in a construction accident, the worker’s employer is not permitted to claim the worker should have paid more attention to what they were doing when the event occurred. However, some important employer-based fault arguments are still available to employers. For example, pursuant to I.C. 22-3-2-8, employers may raise affirmative defenses that no money is owed because the injury was 1) due to the employee’s knowingly self-inflicted injury, 2) due to intoxication, 3) due to the commission of an offense (not including traffic violations), 4) due to a knowing failure to use a safety appliance, 5) due to a knowing failure to obey a reasonable written or printed safety rule which has been posted in a conspicuous position in the place of work, or 6) due to a knowing failure to perform any statutory duty.
Disagreements often occur when an employer raises one of these defenses, and if left unresolved, a judge is asked to determine whether the employer’s defense is valid at a hearing. Like many areas in law, an exploration into the facts of an individual matter is usually necessary to assess the validity of these types of defenses. For example, just because a worker is intoxicated or impaired at the moment the worker is injured, it does not necessarily mean the employer does not owe compensation. Indeed, there is a difference between a drunk worker being injured when the worker drives a delivery truck off the road compared to a drunk worker performing his work satisfactorily when a co-worker accidentally drops an item from above that strikes and injures the worker.
Similarly, not every failure to use a safety appliance or knowing failure to obey a posted and written safety rule bars a recovery. When an employer allows the alleged prohibited conduct to occur or also engages in the prohibited conduct, the employer will not be able to shield itself from responsibility. As an illustration in an industrial or machine setting, if an employer posts an open and obvious sign that machinery must be shut down before it is cleaned, but observes employees cleaning the machine while it is not shut down, the employer will not be allowed to rely on a fault-type defense.
If you need help navigating a matter involving an injury at work where questions exist as to whether the employer may raise an argument that the worker is at fault for the accident, Goodin Abernathy, LLP can bring experience, knowledge, and resources to bear on the question. Contact us today for a free consultation.
I often receive calls from potential clients who are confident that they have been victims of discrimination or harassment, or that they have been wrongfully terminated, yet they may not be aware of the legal meanings of those terms. The law protects employees from discrimination and harassment based on Race, Color, Sex, National Origin, Age (over 40), Disability, Pregnancy, and Genetic Information. To be clear, Indiana is an “at will” employment state. That simply means that most of us work at the will of our employers. Stated another way, we can be fired for any reason (or no reason at all) just not a discriminatory reason. For example, there is nothing illegal about an employer firing an employee based on the quality of his or her work. But, it would be illegal to fire an employee based on their race or age, or gender. Rare is the case where an employer will actually say, “I am firing you because you are too old.” Therefore, we might have to infer the reason, based on other factors. Does your boss suggest that you are too old for the job? Do they ask you questions like, “When are you going to retire?” These types of things might suggest that age was a factor in your termination, even though the employer’s stated reason for firing you was because of “poor work performance.”
There are some really good resources available, through the Equal Employment Opportunity Commission (“EEOC”), that explain what is meant by wrongful termination, and how those laws apply to employees. The EEOC is the federal agency that is charged with enforcing anti-discrimination laws in the United States. In fact, most discrimination claims must first be filed with the EEOC before you can file a lawsuit against the employer. This process is known as “exhausting your administrative remedies.” Below are some links to some very useful information as it pertains to different types of Discrimination and Harassment:
Harassment is unwelcome conduct that is based on race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information. Harassment becomes unlawful where 1) enduring the offensive conduct becomes a condition of continued employment, or 2) the conduct is severe or pervasive enough to create a work environment that a reasonable person would consider intimidating, hostile, or abusive. For more information on what constitutes harassment, you can go to the EEOC’s site by clicking the link below:
Another type of prohibited activity is Retaliation. To be illegal, the retaliation in the employment context must be related to a “protected activity.” For example, if you complained to your Human Resources department that you were being discriminated against based on sex, and then you were immediately fired for engaging in that protected activity, that would be considered retaliation. Below is some useful information to help you understand what types of retaliation are prohibited by employers: https://www.eeoc.gov/retaliation
Lastly, we often get calls about how to collect unpaid wages. If the amount is less than $6,000, the best way to collect those wages is by filing an Online Wage Claim with the Indiana Department of Labor (“IDOL”). Below is a link to the IDOL’s Online Wage Claim Form along with instructions for how to proceed. It the amount is greater than $6,000, we suggest that call us for a free consultation with one of our attorneys that is familiar with Indiana’s Wage Claim and Wage Payment Statutes.
It can be difficult sometimes to stay positive during the current COVID-19 crisis. However, experts recommend that it is not only good for our physical health, but also our mental health to get outside and exercise. With the decrease in motor vehicle traffic, many people are riding their bikes for exercise and enjoyment. In fact, the current pandemic has led to a tremendous surge in bicycle sales around the globe. If you have been shopping for a new bike lately you will know what I am talking about. We have a wonderful system of shared paths here in Central Indiana. As more and more people are using these paths, it is up to each of us to ensure that they are safe for all users and avoid personal and bicycle accidents or injuries whenever possible.
I have always enjoyed cycling, but had fallen away from the activity until recently. The pandemic has allowed me to renew my love for cycling, and I have used this as an opportunity to ride more frequently. I try to ride to work 2-3 days per week, as my schedule allows. With the Courts being closed to the public, and most hearings taking place via phone call or Zoom, I have not needed to wear a suit and tie every day. My current commute is about 25 miles round trip. This takes me about 1 hour each way, and I have found that my rides to and from work are a great way to relieve stress, enjoy the outdoors, and save a little money on gas.
Most of my commute is on shared paths, used by both cyclists and pedestrians, which allows me to avoid interaction with motor vehicles, for the most part. However, most of the accidents and close calls that I have observed were between two bicyclists or bicyclists and pedestrians.
The most common mishaps that I have observed can usually be narrowed down to 3 things: 1. Bicyclists riding too fast for the conditions; 2. Pedestrians who move suddenly out of their lane and in to the path of bicycle that they don’t know is approaching, and 3. Confusion between bicyclists and motorists at the intersections of shared paths and roadways.
I ride a relatively slow, fat-tired bike, with an average speed of 12-14 miles per hour. In my opinion, this is plenty fast for shared trails. To go faster than that in an area where pedestrians are walking is just a recipe for disaster. There are places on the Monon Trail, for example, where cyclists can go faster than that, but when there are crowds of people running and walking and crossing the trail, it is simply not safe.
The other danger that I have observed is cyclists overtaking pedestrians without warning them of their approach. In 2016, the Indiana Legislature removed the requirement at I.C. 9-21-11-8, that all bikes must be equipped with an audible signal device, that can be heard from a distance of 100 feet, such as a bell. I think this was a mistake. A simple bike bell is an easy way to alert others, particularly pedestrians, that you are passing them. In my experience, most pedestrians who walk on shared paths, appreciate the signal that a bike is approaching and will be passing them. Most pedestrians will usually give a hand signal that they heard the bell, and many will even say, “Thank you,” as I pass. Many people walk with their children and their pets. An audible bell gives them a heads up to keep their kids or their pets close as a bicycle passes.
Some pedestrians who are not as familiar with walking on shared paths may be startled by an audible bell. I have observed pedestrians jump upon hearing the bell, or quickly move out of the way. I have observed pedestrians turn suddenly, which can cause them to inadvertently move left and into the path of the cyclist. This can be dangerous. Just last week, I saw a runner, who had reached the point in her run where she was going to turn around and go the other direction. She quickly turned around just as a bicycle was overtaking her. The cyclist did not have a bell to alert his presence. The bell is only to alert pedestrians so that they know a bicycle will be passing on their left. It is not a call to get out of the way, or to even change your course in any way. If more cyclists used a bell, I believe pedestrians would be more attuned, and travel on our shared paths would be even safer. If you are walking on the trail, it is always a good idea to move to the right of the trail before stopping, and look both ways before crossing the trail and reversing direction.
Lastly, there is a lot of confusion about what motorists and cyclists are supposed to do when the shared path intersects with vehicular traffic. If you spend any time on Nextdoor, you will see raging debates about who should stop and when. Everyone needs to follow the rules of the road whether you be driving a car or riding a bicycle. All bikes and motor vehicles should heed the signs that pertain to them at each individual intersection. Bikes and pedestrians are required to stop and make sure the intersection is clear of vehicle traffic before proceeding. If there is a flashing yellow light, motorists need to be prepared to stop to allow pedestrians to cross. Usually, motor vehicle drivers will stop for a flashing yellow light if they see bikes or pedestrians waiting to cross. Always make sure it is safe to proceed before riding your bike across vehicular traffic.
If everyone takes a moment to make sure that their bike is functioning properly, and we all pay attention to the rules of the road, our great system of trails will be safer for everyone. Now get outside and ride your bike!
Chip Clark is a partner at Goodin Abernathy, LLP where he specializes in representing clients who have been injured in personal injury accidents. You can follow him on Instagram at @ChipClarkIndy
Hi. My name is Chip Clark, and I am a partner at Goodin Abernathy, where I focus primarily on the rights of employees. (https://blueorchidresort.com/)
On June 15, 2020, the United States Supreme Court issued its landmark decision in the case of Bostock v. Clayton County, holding that federal law prohibits employment discrimination against LGBTQ workers.
Interestingly, conservative Justice, Neil M. Gorsuch, wrote for the majority in the 6-to-3 ruling, stating:
“An employer who fires an individual merely for being gay or transgender defies the law.”
The case concerned Title VII of the Civil Rights Act of 1964, which bars employment discrimination based on race, religion, national origin and sex. The question for the justices was whether that last prohibition — discrimination “because of sex”— applies to many millions of gay and transgender workers.
Justice Gorsuch wrote that it did.
“An employer who fires an individual for being homosexual or transgender fires that person for traits or actions it would not have questioned in members of a different sex,”
he wrote.
Gorsuch goes on to say,
“It is impossible to discriminate against a person for being homosexual or transgender without discriminating against that individual based on sex.”
The court considered two sets of cases. The first concerned a pair of lawsuits from gay men who said they were fired because of their sexual orientation: Bostock v. Clayton County, Ga., No. 17-1618, and Altitude Express Inc. v. Zarda, No. 17-1623. The second was based on gender identity. In that case, Aimee Stephens, was a funeral director working near Detroit when she was fired in 2013 after announcing she would begin living as a woman. Sadly, Aimee died in May at the age of 59, not living to see her heroic contribution to this landmark decision. Her willingness to stand up to her employer now makes it it illegal for employers to terminate an employee based on gender identity.
In 27 states, there are no explicit statewide laws protecting people from discrimination on the basis of sexual orientation or gender identity in employment, housing and public accommodations, according to Freedom For All Americans, a bipartisan campaign to protect LGBTQ people from discrimination. An employee in one of these states conceivably could be fired for being gay or transgender – and would have no guaranteed rights against it.
In 21 other states, plus the District of Columbia, employees had full protection from discrimination on the basis of sexual orientation and gender identity in employment, housing and public accommodation.
There are 8.1 million LGBTQ workers ages 16 and older in the USA, according to the institute. About 3.9 million of those work in those 27 states.
What About Discrimination in Small Businesses with Fewer than 15 Employees?
Unfortunately, Title VII of the Civil Rights Act only prohibits employment discrimination by employers with 15 or more employees.
Conceivably, a business with fewer than 15 employees in certain parts of Indiana could still legally fire somebody on the basis of sexual orientation or gender identity, unless there is a city or county ordinance prohibiting such discrimination.
Here, in the City of Indianapolis, we have had an ordinance that prohibits such discrimination since 2005. Other Indiana communities have laws to protect against discrimination based on sexual orientation, but not gender identity, so there still remains a patchwork of laws if your employer has fewer than 15 employees.
What Should Workers Do If They Are Fired Based on Sexual Orientation or Gender Identity?
If you’re fired on the basis of sexual orientation or gender identity, the first call you should make is to an attorney who knows and understands this area of the law. We can assist you with filing a charge of discrimination with the U.S. Equal Employment Opportunity Commission or the local agency that enforces state or local anti-discrimination laws. This is the first step in filing a lawsuit in Federal or State Court against an employer who discriminates.
If you have questions about your rights as a member of the LGBTQ community, please call me for free, no obligation, consultation.
The court decided the Trump administration’s attempt to end the program did not consider the harm about 700,000 Hispanics would suffer if their immigration status was suddenly yanked away.
The court considered the Trump administration’s move violated equal protection rights because it was motivated by discriminatory or racial hostility. The administration did not follow proper legal steps to end the DACA program. So for now, our DACA friends can live, work and enjoy life in the United States. But the issues is not finished.
The ruling does not end the DACA debate because if proper legal steps are taken through politics, the government could end the program. Trump’s administration just tried ending it the wrong way.
So that means Hispanics and equal justice supporters must back politicians that will protect the program. Those politicians need votes and ground support before upcoming elections. Be more than dreamers – take action! Hispanics, let’s raise our voices, share our experience and show others why we are an important part of this country.
For today, take a deep breath and smile. Remember to appreciate that America still respects the rule of law.
Whether you are classified as an employee or a sub-contractor may have significant legal and tax obligations. Many people don’t realize that there’s a difference between employees and sub-contractors in Indiana. However, sub-contractors or independent contractors as they are often referred to, don’t receive the same legal protections from the government and don’t have the same rights in the event that you are not paid for your work. Whether you’re an employee or a sub-contractor, you need to spend some time studying the rules and regulations regarding your position and become aware of your rights. If you’re a business owner, it’s even more crucial to distinguish between the two because you have some tax liabilities and obligations.
The Difference Between Employees and Sub-Contractors
Both employees and independent-contractors provide services to you and both get paid for their services. That’s the only commonality between the two types of associates. The IRS states that you can distinguish between employees and independent contractors based on three different categories:
Behavioral Control – Who determines how much control you have over how the job is done. Is it you or is it your boss? Does the employer provide instructions, methodology, training in that methodology, and directions on how and when to carry out the job. If so, this looks and smells like an employer/employee relationship. However, if you are independent, can control the scope of your own work, then your job has the characteristics of an independent contractor.
Financial Control – Who controls how you are paid? Do you bid for the work and then submit a bill or invoice? Or, are you paid an hourly wage? In some industries it may be more difficult to distinguish between independent contractors and employees. Who controls how and when the worker is paid, how they’re reimbursed for equipment used and services rendered, and who bears the profits and loss, etc. An employee can fully expect the employer to provide all necessary tools and equipment to perform their job, and to reimburse them for wear and tear of the equipment they might bring to the job. For example, an employee drives to different locations in their personal car to perform their job might expect to be reimbursed by the employer for the fuel, maintenance and repairs. However, and independent contractor is considered self-employed and must pay all of these expenses out of their pocket. These expenses aren’t considered the business owner’s concern. Think of an independent contractor as a small business owner.
Relationship between the Parties – The most significant difference between an employee and an independent contractor is their relationship with the employer. Subcontractors should have written contracts for every job they do or for a fixed duration. Employees, on the other hand, typically do not have contracts. They are employed “at-will” but they receive regular pay checks, and have taxes deducted from their pay. Employees also may have benefits associated with their employment such as health insurance, paid time off, and reimbursements for expenses
Why Is the Classification Between Employee & Independent Contractor Important?
This classification is very important because it impacts how you file your taxes. Here’s a brief description of your obligations based on whether you’re an employer, employee or a sub-contractor:
Employee – If you’re an employee, your employer is responsible for paying your social security and employment tax obligations by withholding the amount from your wages or salary. In return, you won’t need to concern yourself about the obligatory payments to the government.
Independent Contractor – If you’re a contractor, you’re responsible for your own self-employment taxes, which must be paid quarterly.
Employer – As an employer, the distinction is very important because you’ll need to pay the taxes, social security, and insurance on your employee’s behalf, and you will issue them a Form W-2 at the end of each year. You can deduct the needed amount from your employee’s salary and compensation. You will also have to pay state taxes and federal unemployment taxes on behalf of your employees. If you have independent contractors working for you, you are not required to withhold payroll taxes, and you will issue a Form 1099 at the end of the year.
Because it seems simpler to hire independent contractors, employers often misclassify their employees as such in an effort to avoid paying payroll taxes, etc. If you are found to be misclassifying your employees as independent contractors, you may be subject to fines and penalties issue by the US or Indiana Department of Labor.
Reporting the Earnings of Employees & Independent Contractors
As a business owner, you need to report every employee and independent contractor you have on hand. You also need to make sure you have classified them correctly. The Department of Labor is very stringent on the difference between an independent contractor and an employee. In fact, they have cracked down on entire industries that try to misclassify employees as independent contractors. You are also required to pay employees overtime for every hour over 40 hours in a given week. Overtime is 1.5 times the amount of your regular hourly rate. This is another reason why employers seek to classify their workers as independent contractors. That is, they are trying to avoid the overtime requirements of the Fair Labor Standards Act.
What Should You Keep in Mind?
There are significant penalties for employer who refuse to pay their employees’ wages. In Indiana, this can be up to 2 times the amount of wages, plus attorney’s fees. Failure to pay an independent contractor does not have these penalties. Rather, this is just a simple breach of contract claim. If you are an independent contractor, it is important to have a written contract. As part of the terms of that agreement, specify that you can seek attorney’s fees if you are not paid. Without such a clause, it may be difficult, and expensive to find an attorney to take your case.
If you believe your employer has misclassified you as an independent contractor, you should contact an attorney immediately. It may be that you want to report the company to the Department of Labor.
I have always enjoyed cycling, but had fallen away from the activity until recently. The pandemic has allowed me to renew my love for cycling, and I have used this as an opportunity to ride more frequently. I try to ride to work 2-3 days per week, as my schedule allows. With the Courts being closed to the public, and most hearings taking place via phone call or Zoom, I have not needed to wear a suit and tie every day. My current commute is about 25 miles round trip. This takes me about 1 hour each way, and I have found that my rides to and from work are a great way to relieve stress, enjoy the outdoors, and save a little money on gas.
