Many workers assume that if they face employment discrimination, they can march into court with a lawsuit and get justice. But here is the harsh reality—Title VII of the Civil Rights Act of 1964 only protects employees, not independent contractors, business owners, gig workers, volunteers, or anyone else who is not in a traditional employment relationship. That means if your paycheck comes via a 1099, your boss calls you a “consultant” or “independent contractor”, or you are technically your own boss, you might not have the legal protection you think you do … or maybe you do. Like most things legal, there is no clear bright line answer.
If you are not an employee, it is like showing up to a party and realizing your name is not on the guest list—no matter how unfair it seems, you are not getting in. The law draws a firm line between “employees” and everyone else, and if you fall on the wrong side of that line, Title VII will not have your back even if the race discrimination or gender discrimination is clear. So, how do you find out if your name is on the Title VII guest list? The best option is to contact a skilled employee’s rights lawyer to help you figure it out.
Title VII, ADA, and ADEA Do Not Cover Non-Employees: Here Is What That Means for You
Title VII prohibits employment discrimination based on race/color, gender, gender identity, sexual orientation, national origin, and religion. It applies to employers with at least 15 employees and covers employees—but not everyone who performs work is considered an employee under the law. The Americans with Disabilities Act (“ADA”) outlaws disability discrimination and provides similar protections for individuals with disabilities, ensuring that employers cannot discriminate based on a person’s physical or mental impairment. The Age Discrimination in Employment Act of 1967 (“ADEA”) prohibits discrimination against age discrimination for workers over the age of 40; protecting older employees from being pushed out in favor of younger hires. However, just like Title VII, these laws only apply to actual employees—not independent contractors, business owners, or freelancers. If you are an independent contractor, partner, sole proprietor, or someone engaged in a business-to-business relationship, Title VII, ADA, and ADEA likely do not apply to you.
This hard lesson was front and center in Palani Karupaiyan v. Experis US Inc., 2025 WL 615179, where the United States Court of Appeals for the Second Circuit threw out multiple discrimination claims, including race discrimination, age discrimination, and disability discrimination, because Karupaiyan was not an employee. Instead of applying as an individual, he applied for work through his own consulting company, meaning he was never in an actual employment relationship with Experis US Inc. nor the New York City Department of Education. Despite his claims that he was denied work due to discrimination, the Court ruled that he was not protected by Title VII, the ADA, the ADEA, or the NYSHRL, because he was never an employee under the law.
In Karupaiyan, the Second Circuit Court of Appeals held that “Title VII, by its terms, applies only to ‘employees,’” and ruled that because Karupaiyan applied for work through his consulting company, he was not protected under Title VII, ADA, ADEA, nor New Yorks’ employment laws. The Second Circuit Court of Appeals held that his company, not him personally, was the one technically “applying” for the job, making him ineligible for protections under federal and state employment discrimination laws.
But independent contractors are not the only workers excluded. If you are a business owner who contracts with a company, a freelancer, a volunteer, or a partner in a business, Title VII may not apply to you either. Understanding whether you are legally an employee is critical to knowing whether you are protected under employment law.
Best Employment Discrimination Lawyer Blogs on Point:
- USERRA Protects Employees, But Not Independent Contractors
- What To Look For If You Think You Are Being Discriminated Due To Your Race?
- Can I Prove My Employer Lied About Why I Was Fired?
- Can I Be Fired for Calling My Boss a Racist?
How Do Courts Decide If You Are an Employee?
If you are thinking, “Wait, my employer controls my schedule and work, so I must be an employee, right?”—not so fast. Courts use a multi-factor test to determine worker status.
In Karupaiyan, the Second Circuit relied on several factors to determine that Karupaiyan was not an employee. The Court considered whether the company controlled his work, how he was paid, and whether he received benefits. Since Karupaiyan applied through his consulting firm and was not going to be directly hired, the Court ruled he was not an employee.
Courts will look at the degree of control the employer has over the worker, including whether the company dictates how, when, and where the person works. They also evaluate whether the employer provides the worker’s tools and equipment, pays wages through a W-2 rather than a 1099, and whether the worker is subject to supervision, discipline, or other workplace policies. Other key factors include whether the worker receives benefits like health insurance, paid time off, and retirement contributions. The more independence a worker has, the less likely they are to be classified as an employee under Title VII.
Karupaiyan did not meet the test for an employee because Experis had no control over his work, did not provide him with tools or equipment, and would have paid his consulting company rather than him directly. He would not have been subject to the company’s internal workplace policies or received any employment benefits. Because of these factors, he was not protected under federal employment discrimination laws.
Best Employee Misclassification Attorney Blogs on Point:
- Am I An Independent Contractor Or Employee Under The FLSA?
- Do Independent Contractors Have A Right To Overtime Pay?
- Am I Being Misclassified As An Independent Contractor?
- Employee or Independent Contractor? Your Employer May Be Misclassifying You.
What Should You Do If You Think You Are Misclassified?
Let’s be real, companies love to call workers “independent contractors” when it benefits them. No benefits? Check. No job protections? Double check. No overtime pay? Check again. No Title VII coverage? You got it.
If your employer is calling you a contractor but treating you like an employee, do not wait until it is too late. Misclassification can strip you of important employment law protections, including the right to sue for wrongful termination or workplace discrimination. Document everything—your job duties, how you are paid, the level of control your employer has over your work, and any instructions you receive. The more evidence you have, the stronger your case.
If you believe you have been misclassified or wrongfully denied employment discrimination protections under Title VII, you need an experienced legal team that knows how to fight back. Spitz, The Employee’s Law Firm, is one of the best choices for workers because we focus exclusively on employment law and know the tricks employers use to dodge liability. We offer a free initial consultation, so you can get answers before making any decisions. Our no fee guarantee means you do not pay unless we win. With a proven track record of trial success and a deep understanding of misclassification laws, we have the resources and experience to take on even the largest employers. Do not let your employer get away with stripping you of your rights. Call Spitz, The Employee’s Law Firm today and get the representation you deserve.
Employment Attorney Disclaimer
This race and age discrimination blog is for informational purposes only and does not constitute legal advice. If you believe you have been misclassified, wrongfully fired, or subjected to employment discrimination, consult a qualified employment lawyer for personalized legal guidance. Every case is different, and past results do not guarantee future outcomes. This blog is a legal advertisement intended to provide general information about employment law rights. Reading this blog does not create an attorney-client relationship. Laws vary by state, and you should speak with an attorney to understand how employment law applies to your specific case. If you suspect your employer has violated your rights, document everything and contact an attorney immediately.