Whether a worker is an “employee” or an “independent contractor” is critical when it comes to such important issues as pension eligibility, workers' compensation coverage, wage and hour law, and many other matters. In some situations, federal law will govern, but the question is most often resolved by looking to state law, particularly in areas such as unemployment tax liability, workers' compensation, and state wage and hour requirements.
Whistleblowers. The Delaware Whistleblowers' Protection Act protects both employees and independent contractors (DE Code Tit. 19 Sec. 1702).
Construction industry. Delaware has enacted the Workplace Fraud Act, which makes it specifically illegal for an employer in the construction services industry to improperly classify an individual who performs work for remuneration as an independent contractor (DE Code Tit. 19 Sec. 3501 et seq.).