Types of Employment Broken Down

Jump to Section

Need help with an Employment Contract?

Post Project Now

Types of Employment Broken Down

Understanding types of employment in modern day labor markets is critical for organizations that employ a variety of workers. Leveraging different types or classifications of workers can allow employers to strategically staff their labor to create as much productivity as possible.

Given the options, it is very important for employers to understand the difference between workers and be able to properly classify their legal status to avoid breaking the law.

Below we will go over some basics you need to know then dive into the different types of employment.

What is an employment contract?

An employment contract is a binding document between an employer and an employee, freelancer, independent contractor, or subcontractor. The agreement should include the terms of employment and ensure that parties to the agreement understand what is expected of them.

Examples of various employment agreements:

What is an employment status?

Someone’s employment status is defined and dictated by the employer, and is the legal ‘status’ that defines the protections and rights a worker is entitled to. These rights become obligations for the employer in the relationship with the employee. There are three different types of employment status:

  • Employee
  • Worker
  • Self-employed

What is an employee?

An employee is hired individual that is paid wages to for the benefit of the employer. Compensation can include hourly wages or annual salaries for a specific job. One thing to keep in mind is not all hourly wage earners are employees and it is important for an employer to determine the worker’s classification.

Types of Employee

  • Full-Time – As set by IRS standards , full-time employees at organizations are typically working 130 hours or more in a calendar month, which breaks down to 30 – 40 hour work weeks.
  • Part-Time – Employees working less than 30 hours in a work week for an employer are typically classified as part-time employees.
  • Temporary – Temporary employees are typically hired by employers for a specific length of time or a specific project that has a defined end date.
  • Seasonal – Seasonal employees are typically hired by employers during peak seasons for certain industries.
  • Leased – Leased employees are hired through staffing agencies and are on the employer’s payroll.

Get Free Bids to Compare

Leverage our network of lawyers, request free bids, and find the right lawyer for the job.

Get Bids Now

What is a contingent worker?

Contingent workers are non-permanent and non-employee professionals that are typically hired to perform a specific duty. Contingent workers are not considered employees of the company they are performing service for and are typically experts in their field completing specific tasks. Examples of contingent workers are freelancers, consultants, and independent contractors.

The key ways that make contingent workers different are:

  • Contingent workers have no access to benefits
  • Contingent workers have no salary
  • Contingent workers file their own taxes
  • Contingent workers in full control over the delivery of their work (how, where, when)

Contingent workers are typically under contract with a business through one of the below:

  • Independent Contractor Agreement
  • Consulting Agreement
  • Freelance Contract

Types of Contingent Workers

  • Freelancer - Contingent workers, such as creatives, like to use the word ‘freelancer’ to describe themselves. Freelancer, however, does not have distinguishable differences.
  • Temp Workers - Contingent workers are sometimes referred to as ‘temporary’ workers.
  • Consultants – As discussed above, employers will often hire experts in their field to help. These service providers are commonly referred to as consultants.

ContractsCounsel Types Of Employment

Image via Pexels by Aleksey

Classifying employees vs. contingent workers

The Internal Revenue Service has a system to help determine employee classification based on the below items:

  • Behavioral – The employer dictates how the worker does their job.
  • Financial – The employer controls how the worker is paid and provides tools for them.
  • Type of Relationship – There is a written contract, the work performed is key to the business, employer provides benefits, etc.

The Fair Labor Standards Act (FLSA) also has a system for classifying employment, which is outlined below:

  • Essential work - Workers are considered employees if they perform work that is essential to the success of the business.
  • Managerial skills - Workers are probably employees if their managerial skills present profit-or-loss opportunities for business
  • Invest in equipment - Workers are likely contingent if they buy their own equipment.
  • Special abilities - Workers could either be employees or contingent workers if the work requires special abilities
  • Permanent relationship - Workers are likely employees if their relationship with the employer is or seems permanent
  • Control - Workers are likely employees if the employer has or retains control over them

If you have any additional questions about employment status or hiring employees, it is wise to consult an employment lawyer to make sure you are covered.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

ContractsCounsel verified
11 years practicing
Free Consultation

Jaclyn is an experienced intellectual property and transactional attorney residing and working in NYC, and serving clients throughout the United States and internationally. She brings a targeted breadth of knowledge in intellectual property law, having years of experience working within the media, theater, PR and communications industries, and having represented clients in the music, entertainment, fashion, event production, digital media, tech, food/beverage, consumer goods, and beauty industries. She is an expert in trademark, copyright, and complex media and entertainment law matters. Jaclyn also taught as an Adjunct Professor at Cardozo School of Law, having developed and instructed the school’s first Trademark Practicum course for international students. In her spare time, Jaclyn’s passion for theater and love for NYC keeps her exploring the boundless creativity in the world’s greatest city!

ContractsCounsel verified
2 years practicing
Free Consultation

A bilingual attorney graduated from J.D. with a C.P.A. license, an M.B.A. degree, and nearly ten years of experience in the cross-border tax field.

ContractsCounsel verified
13 years practicing
Free Consultation

Experienced and business-oriented attorney with a great depth of contract experience including vendor contracts, service contracts, employment, licenses, operating agreements and other corporate compliance documents.

ContractsCounsel verified
23 years practicing
Free Consultation

With over 21 years of practice, Chet uses his vast experiences to assist his clients in the most efficient manner possible. Chet is a magna cum laude graduate of University of Miami School of Law with an extensive background in Business Law, Commercial Real Estate, Corporate Law, Leasing Law and Telecommunications Law. Chet's prior experience includes 5 years at two of the top law firms in Georgia and 16 years of operating his own private practice.

ContractsCounsel verified
Managing Partner
40 years practicing
Free Consultation

Steve Clark has been practicing law in DFW since 1980. He is licensed in both Texas and Louisiana state and federal courts. He concentrates his practice on business clients and their needs. He has been a SuperLawyer in Texas since 2011, and is Lead Counsel rated in Business Law. He is also a Bet the Company litigator in Texas.

ContractsCounsel verified
12 years practicing
Free Consultation

I am a top-performing bi-lingual legal services professional with a proven record of success. Reputation of assessing and evaluating client’s needs and providing individualized solutions in line with those needs while efficiently handling multiple tasks simultaneously. Able to create a collaborative work environment ensuring business objectives are consistently met. Seeking an attorney role within a legal setting to apply skills in critical thinking, executive communications, and client advocacy.

ContractsCounsel verified
Managing Partner
11 years practicing
Free Consultation

I run a small law firm in Pasadena, CA. I have been practicing for almost 10 years and the other attorneys at my firm each have 12+ years of experience. We focus on business and employment law, protecting and defending business owners. While my clients are all sizes, I particularly enjoy helping smaller companies and individuals manage their legal needs without the high price tag.

ContractsCounsel verified
40 years practicing
Free Consultation

I have over 25 years' experience representing individual and company clients, large and small, in transactions such as mergers and acquisitions, private offerings of securities, commercial loans and commercial endeavors (supply contracts, manufacturing agreements, joint ventures, intellectual property licenses, etc.). My particular specialty is in complex and novel drafting.

ContractsCounsel verified
Litigation Attorney
5 years practicing
Free Consultation

I assist individuals and businesses across the state of Florida with contract drafting, contract interpretation, and issues that may arise because of contract terms, including demands (cease-and-desist letters) and litigation. I have experience with general service contracts, non-compete agreements, settlement agreements, and many other contracts. Please reach out if I can help you with a contract-related project!

ContractsCounsel verified
5 years practicing
Free Consultation

Brianna is a well-respected attorney with a juris doctorate degree in law from Touro College Jacob D. Fuchsberg Law School and bachelor’s degree in Business Administration and Management from Dowling College. Since becoming an attorney, she has practiced in various areas including business law, real estate, employment law, estate planning, and more. Brianna has very broad and extensive business experience; She is an entrepreneur and co-owner of a manufacturing company that was built by her and her partner, where she also served as the Chief Legal Officer/General Counsel and Human Resource Manager for the company. She has been involved in business for over 15 years, thus she offers a very unique skillset to her clients; not only does she understand contractual principals and obligations from a legal perspective while drafting and negotiating agreements, but she also has the foresight and ability to ensure the agreement reflects the practical aspects of the business. Based on the client’s needs and desired outcome, she has the forethought to cover different angles that would be overlooked from a legal standpoint but be of consequence in business. She conducts risk assessments and minimizes client’s risk and exposure to potential liability. Additionally, she specializes in drafting and negotiating agreements. Negotiating is a passion of hers; in law school, she was a member of the Alternative Dispute Resolution Society and won the intraschool negotiation competition. Brianna believes in quality over quantity. She treats every client as a top priority; thus she will not take on many cases at a time because she wants to give each client the focus and attention they deserve. She has sharp attention to detail and is a forceful advocate for every client.

ContractsCounsel verified
Outside General Counsel / Business Attorney
34 years practicing
Free Consultation

Experienced and broad based corporate/business attorney and Outside General Counsel (OGC), for start-ups, small businesses and growing companies of all sizes, advising and assisting clients with corporate and LLC formation, contracts and agreements, internet and terms of use/service agreements, trademarks and intellectual property protection, the purchase and sale of businesses (M&A), labor and employment matters, compliance and risk management, corporate governance, and commercial leasing matters. See other reviews on my website at www.ogcservices.net/reviews

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call