Learn how to determine whether a person providing a service to you is an employee or an independent contractor. Your employer IS in breach of contract.In the search box enter "independent contractor vs employee". You can also file Form SS-8 with the IRS. This page helps employers determine if their workers are employees or independent contractors, sometimes called contract labor. Misclassification occurs when an employer treats a worker who is an employee under the FLSA as an independent contractor. I never signed a contract as an "Independent Contractor", and now that I've resigned from my position, the employer is withholding my funds that I'm owed.