About the Brief

Download Brief

Workers who meet the legal definition of employees receive statutory protections such as minimum wage, overtime pay, and Unemployment Insurance coverage. Workers defined as self-employed forgo these protections as well as other employer-provided benefits such as health insurance and retirement plans. In order for workers to make informed choices between employment and self-employment, they need to understand how those rights and benefits vary with classification (i.e., employee vs. self-employed). A recent Abt Associates survey of 8,503 workers explored the extent to which workers understand those rights—and found a moderate level of confusion.

The brief provides high-level findings of the survey that asked workers for their (1) work status (employee or self-employed) and (2) what earnings documentation for tax purposes they receive from their main job (W-2 or 1099-MISC). It then asked for which of six protections they were eligible: minimum wage (MW), overtime (OT), Unemployment Insurance (UI), Workers’ Compensation (WC), Occupational Safety and Health (OSHA), and Family and Medical Leave Act (FMLA).

Key Takeaways

• Clearly Identified Employee (CIEs) - While exceptions exist, most employees should answer that they are covered by or eligible for each of these rights and benefits. The survey confirmed this base level of understanding; most (but far from all) CIEs report they are covered. In results not reported, most CIEs who report not being covered offer plausible reasons (e.g., being exempt).
• Self-Reported Self-Employed (SRSEs) - In almost all cases, the truly self-employed should answer that they are not protected by the six protections. However, a large percentage of SRSEs also report being covered: Nearly two in five for minimum wage (38 percent), OSHA (39 percent), and FMLA (39 percent); slightly fewer for overtime (17 percent), Unemployment Insurance (24 percent), and Workers’ Compensation (30 percent).

Citation

Klerman, J.A., Daley, K., Dunton, L. (2016). Abt Associates. Understanding of Employee Protections. Chief Evaluation Office, U.S. Department of Labor.

Download Brief   View Study Profile

The Department of Labor’s (DOL) Chief Evaluation Office (CEO) sponsors independent evaluations and research, primarily conducted by external, third-party contractors in accordance with the Department of Labor Evaluation Policy and CEO’s research development process.