Classifying a worker as an independent contractor rather than an employee significantly affects an employer’s obligations towards the worker and can result in liability for misclassification. Employees are entitled by law to certain benefits and protections to which independent contractors are not entitled. Therefore, employers who misclassify their employees as independent contractors face potential liability for various unpaid employee expenses such as payroll taxes, workers’ compensation and unemployment insurance premiums, and even minimum wage and overtime payments, which are not owed to independent contractors. Employees are also protected by various federal and state anti-discrimination and medical leave protections under which independent contractors are not protected.