Arizona Employment Classification

[These are articles are for information purposes only and are not intended for legal or tax advice.  They provide general information about 1099 and W-2 Employment classifications as they relate to different states.  While efforts are made to ensure accuracy and completeness, it's critical that anyone seeking advice or up-to-date information on these topics consult their own independent tax or employment lawyer.]

In Arizona, a dental hygienist or assistant working in a dental office may be classified as a 1099 independent contractor if they are considered to be in business for themselves and have control over how they perform their work.

In contrast, if the individual is considered to be an employee, they would be classified as a W-2 employee and would typically be subject to taxes and benefits that are typically provided to employees. 

Arizona employment law uses several factors to determine if a worker is considered as a 1099 independent contractor or a W-2 employee when working in a dental office. These factors include:

1. The degree of control that the dental office has over the dental hygienist or assistant's work. If the dental office has a significant level of control over when, where, and how the work is performed, the individual is more likely to be considered an employee.

2. The level of autonomy and independence of the dental hygienist or assistant. If the dental hygienist or assistant has a high degree of autonomy and independence in performing their work, they are more likely to be considered an independent contractor.

3. The level of skill and expertise required to perform the work. If the dental hygienist or assistant is required to have a high level of skill and expertise to perform their work, they are more likely to be considered an independent contractor.

4. Whether the dental hygienist or assistant provides their own equipment, supplies and materials.

5. The duration of the work. If the dental hygienist or assistant is working for the dental office on a long-term basis, they are more likely to be considered an employee.

6. Whether the dental hygienist or assistant has the opportunity for profit or loss. Independent contractors typically have the opportunity to make a profit or loss.

A dental hygienist or assistant might be classified as a 1099 independent contractor when providing temporary work in a dental office if the following circumstances apply:

1. The dental hygienist or assistant is operating as an independent business and has been engaged as an independent contractor to provide services to the dental office on a one-day temporary basis.

2. The dental office has limited control over the dental hygienist's work and does not dictate how the work should be performed.

3. The dental office does not provide benefits such as health insurance or paid time off to the dental hygienist or assistant.

4. The dental hygienist or assistant provides their own equipment and supplies.

5. The duration of the work is limited to a temporary shift.

6. The dental hygienist or assistant has the opportunity to make a profit or loss based on their performance

It's important to note that no single factor is determinative, and all factors are evaluated together to determine the worker's classification.

If an employee is misclassified as an independent contractor, there can be a variety of negative consequences for both the employee and the employer. In general, the employer bears the risk if the employment is misclassified. Some of the risks that employers may face include:

• Liability for unpaid taxes: If an employee is misclassified as an independent contractor, the employer may be liable for unpaid taxes, including Social Security, Medicare, and unemployment taxes.

• Liability for unpaid benefits: Employers may be liable for benefits such as workers' compensation, unemployment compensation, and vacation pay that should have been provided to the employee but were not.

• Liability for discrimination and other employment law violations: Employers may be liable for discrimination and other employment law violations if the misclassification resulted in the employee not being protected under those laws.

• Liability for overtime and minimum wage violations: Employers may be liable for overtime and minimum wage violations if the employee is entitled to these benefits but did not receive them because of misclassification.

• Liability for penalties and fines: Employers may face penalties and fines for misclassifying employees, particularly if they do so intentionally or repeatedly.

It's worth noting that employees can also face negative consequences if they are misclassified as independent contractors, such as loss of benefits and protections, and lack of legal recourse in case of violations. Misclassification can also have negative impacts on the government, particularly if taxes and benefits aren't being paid as they should be.

If a dental hygienist or assistant is incorrectly classified as a 1099 independent contractor, they may face a number of negative consequences. Some of the risks that the hygienist may face include:

• Loss of benefits: As an independent contractor, the hygienist would not be eligible for benefits such as health insurance, retirement plans, and paid time off, which employees typically receive.

• Lack of job security: Independent contractors do not have the same job security as employees and can be terminated at any time without notice.

• Lack of legal recourse: Independent contractors do not have the same legal protections as employees, and may not be able to take legal action if they experience discrimination, harassment, or other employment-related issues.

• Lack of protection under state and federal laws: Independent contractors are not covered under state and federal laws related to workers' rights, such as the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Occupational Safety and Health Act (OSHA).

• Lack of protection under worker's compensation: Independent contractors are not covered under worker's compensation insurance, if they get injured while working they have to bear the expenses themselves.

• Responsibility for self-employment taxes: As an independent contractor, the hygienist would be responsible for paying their own self-employment taxes, which can be a significant financial burden.

It's important to note that employers are held liable for misclassifying workers, and that the dental hygienist or assistant should consult with a legal expert and the state's labor department if they suspect that they have been misclassified.

Regardless of how a worker is classified, the worker can still be protected by certain state and federal laws, such as anti-discrimination laws and laws related to safety and health in the workplace. Employers should consult with legal counsel to ensure compliance with all applicable laws.

Side Note:  Occasionally we've heard comments and opinions that, depending on the state, being classified as a 1099 Independent Contractor might put a dental hygienist's license in jeopardy if their state licensure requires their provision of care to be performed under the direction and oversight of a licensed dentist. 

In short, the opinion goes something like this:  "If you are a 1099 Independent Contractor, then you were self-determinant in the provision of your care and not under the direction a dentist.  But your license requires you to provide care only under the direction of a licensed dentist.  So your license is now at risk."   

We at TempStars care very much about patient care, state regulations, doing the right thing and that dental care is only provided under valid circumstances by licensed professionals.  So when we heard this, we made every effort to investigate and dig into the validity of this opinion.   

Despite very extensive research and inquiry with dental professionals and dental hygiene licensing bodies, we found no evidence to support this.  The hygienist licensures indicated their priority concern was whether a licensed dental hygienist was performing their duties according to their state regulations and guidelines. 

But we as a team and organization are dedicated to supporting dental professionals and providing the resources needed for success - so if you or anyone you know has had their dental hygiene license disciplined or suspended solely due to the nature of an employment relationship being misclassified, we would very much like to know. 

Please contact our team at help@tempstars.com and we are offering a reward to any licensed U.S. dental hygienist for the details of their story and situation so that we may help further shine light on this topic and provide the best and most accurate resources and information possible.  Thank you!