Your boss sets your hours, assigns your projects, and expects you at the same desk every morning. Yet when tax season arrives, you receive a 1099 instead of a W-2. Something doesn’t add up. For workers across Maryland, the distinction between employees and independent contractors can determine whether they receive overtime pay, unemployment benefits, and other important workplace protections.
Generally, employees work under an employer’s direction and depend on that business for their jobs, while independent contractors operate their own businesses and exercise greater control over how they complete their work. However, Maryland law looks at the actual working relationship, not just the title an employer assigns.
If your employer calls you an independent contractor but treats you like an employee, you may have grounds to challenge your classification. At Smithey Law Group LLC, attorney Joyce E. Smithey and her team help Maryland workers navigate complex employment disputes, investigate potential legal violations, and pursue compensation when employers deny them the protections they deserve.
How Does Maryland Law Distinguish an Employee vs Independent Contractor?
Maryland law looks at how people actually work, not just what their employers call them. When determining employee vs independent contractor status, government agencies consider who controls the work, whether someone operates an independent business, and the economic realities of the relationship. However, different laws apply different classification tests.
According to the Maryland Department of Labor, several factors can help establish whether someone functions as an employee or runs an independent enterprise, including:
- Control over daily responsibilities—whether the company dictates schedules, supervises assignments, and determines how individuals perform their duties;
- Financial independence—whether workers can earn additional profits or suffer losses through their own business decisions;
- Equipment and expenses—whether individuals supply their own tools, materials, and resources rather than relying on the company;
- Business relationships—whether someone offers services to multiple customers or works continuously for a single organization; and
- Independent operations—whether workers maintain their own businesses, market their services, and exercise professional judgment over assignments.
No single factor automatically determines employment status. Under the federal Fair Labor Standards Act, courts examine the economic realities of the working relationship to assess whether someone depends on an employer for work or operates independently. If your work arrangement raises questions about your classification, Smithey Law Group can examine how your employer actually treats you, identify signs of misclassification, and determine whether you’ve lost wages or legal protections.
When Does Maryland Use the ABC Test for Independent Contractors?
Maryland applies the ABC test when determining worker classification for unemployment insurance and under its Workplace Fraud Act, which covers construction and landscaping businesses. Other employment laws use different standards. Under certain Maryland laws, an employer must establish all three conditions to exclude a worker from covered employment:
- Freedom from control—the individual works without the company’s direction over how they perform their services, both under the contract and in practice;
- Independent business activity—the worker customarily operates a separate business or occupation involving similar services; and
- Nature or location of services—the individual performs work outside the company’s usual business activities or away from its places of business.
The Maryland Workplace Fraud Act also incorporates these requirements, though statutory exceptions can affect how they apply. For wage claims and other employment disputes, courts may apply different classification standards.
Whether you work for an Annapolis consulting firm, a Baltimore construction company, or a Frederick marketing agency, your job title alone cannot determine your legal rights. Smithey Law Group LLC can review how your employer operates, identify which Maryland classification rules apply, and help you recover wages or benefits you may have lost through misclassification.
Can You File an Employee Misclassification Lawsuit in Maryland?
If your employer improperly classifies you as an independent contractor, you may have grounds for an employee misclassification lawsuit to recover unpaid wages or other compensation. Your legal options depend on which employment protections your employer violated and how the misclassification financially affected you.
Under the Maryland Wage and hour laws, workers who qualify as employees may pursue unpaid minimum wages or overtime compensation. The federal Fair Labor Standards Act also allows qualifying workers to seek back pay and, in certain circumstances, additional damages.
Depending on your situation, you may have several options:
- File a wage complaint—seek assistance from the Maryland Department of Labor for qualifying violations;
- Pursue unpaid compensation—bring a lawsuit to recover wages your employer unlawfully withheld;
- Challenge unemployment coverage—dispute an incorrect classification that affects your eligibility for unemployment benefits; and
- Report workplace fraud—notify Maryland authorities about suspected violations in construction or landscaping.
Before taking action, preserve your contracts, payment records, work schedules, and communications with supervisors. Then speak with an attorney. A Maryland employment attorneyat Smithey Law Group can assess whether the law considers you an employee, calculate potential losses, and determine which legal remedies fit your circumstances.
Challenge Employee Misclassification with a Maryland Employment Attorney at Smithey Law Group LLC
You may have accepted an independent contractor position because the pay seemed good and the arrangement offered flexibility. But somewhere along the way, your employer began dictating your hours, controlling your assignments, and treating you like everyone else on the payroll. Except you don’t receive the same benefits or protections. Now you’re wondering whether the company has been taking advantage of you, and how much that arrangement may have cost you.
At Smithey Law Group LLC, our attorneys focus exclusively on labor and employment law. They’ve built a reputation that extends well beyond Maryland courtrooms, earning recognition from Chambers USA, Best Lawyers, Super Lawyers, and Martindale-Hubbell, including its prestigious AV Preeminent rating. Our attorneys also serve in leadership positions within the Maryland State Bar Association, teach employment law, and author respected legal publications. They bring that knowledge to the practical work of examining employer records, challenging questionable classifications, and pursuing compensation through negotiation or litigation.
You may have spent years doing everything your employer required. Now it’s time to find out what the law requires of them. Contact us today to speak with a Maryland employment attorney who can investigate your classification and fight for the compensation and protections you deserve.
Legal References Used to Inform This Page
To ensure the accuracy and clarity of this page, we referenced official legal and other resources during the content development process:
- Maryland Department of Labor: Factors in Making The Distinction Between an Employee and Independent Contractor – The Maryland Guide to Wage Payment and Employment Standards
- U.S. Department of Labor, Wage and Hour Division: Final Rule: Employee or Independent Contractor Classification Under the Fair Labor Standards Act, RIN 1235-AA43
- Maryland Labor and Employment § 8-205
- Maryland General Assembly Labor and Employment: Workplace Fraud Act §3–903
- Maryland Department of Labor, Workplace Fraud Act: Frequently Asked Questions (FAQs) for Workers – Worker Classification Protection
- U.S. Department of Labor Wage and Hour Division: Misclassification of Employees as Independent Contractors Under the Fair Labor Standards Act
