Hourly, salaried, or contractor

A short read

Before we start

This covers the United States and Canada, and it says which is which on every screen that states a rule. The tests below are stable. The documents describing them are not — both countries changed theirs in the last two years. It is general information, not legal advice about your own job.

Sources

IRS — Independent contractor (self-employed) or employee? and Topic no. 762: the three common-law factors (behavioural control, financial control, type of relationship)
US Department of Labor, Wage and Hour Division — Misclassification of Employees as Independent Contractors under the FLSA; the economic-reality analysis, revised by final rule 10 January 2024 and proposed for further revision 26 February 2026
671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59 — the Canadian test; with Wiebe Door Services Ltd. v. The Queen
Canada Revenue Agency employment-status pages — replacing guide RC4110, which was cancelled 30 January 2026