diff --git a/R/sparse_dummy.R b/R/sparse_dummy.R
index 9287ea7..a69538b 100644
--- a/R/sparse_dummy.R
+++ b/R/sparse_dummy.R
@@ -2,7 +2,7 @@
 #' 
 #' @param x A factor.
 #' @param one_hot A single logical value. Should the first factor level be
-#' ignored. Defaults to `FALSE`.
+#' included or not. Defaults to `FALSE`.
 #' 
 #' @details
 #' Only factor variables can be used with [sparse_dummy()]. A call to 
@@ -33,7 +33,7 @@
 #' 
 #' sparse_dummy(x, one_hot = TRUE)
 #' @export
-sparse_dummy <- function(x, one_hot = FALSE) {
+sparse_dummy <- function(x, one_hot = TRUE) {
   if (!is.factor(x)) {
     cli::cli_abort("{.arg x} must be a factor, not {.obj_type_friendly {x}}.")
   }
@@ -42,7 +42,7 @@ sparse_dummy <- function(x, one_hot = FALSE) {
 
   x <- as.integer(x)
   
-  if (one_hot) {
+  if (!one_hot) {
     lvls <- lvls[-1]
     x <- x - 1L
   }
diff --git a/man/sparse_dummy.Rd b/man/sparse_dummy.Rd
index 7f4f94a..f8667bc 100644
--- a/man/sparse_dummy.Rd
+++ b/man/sparse_dummy.Rd
@@ -4,13 +4,13 @@
 \alias{sparse_dummy}
 \title{Generate sparse dummy variables}
 \usage{
-sparse_dummy(x, one_hot = FALSE)
+sparse_dummy(x, one_hot = TRUE)
 }
 \arguments{
 \item{x}{A factor.}
 
 \item{one_hot}{A single logical value. Should the first factor level be
-ignored. Defaults to \code{FALSE}.}
+included or not. Defaults to \code{FALSE}.}
 }
 \value{
 A list of sparse integer dummy variables.
diff --git a/src/sparse-dummy.c b/src/sparse-dummy.c
index 9e554c5..7d4a853 100644
--- a/src/sparse-dummy.c
+++ b/src/sparse-dummy.c
@@ -81,15 +81,10 @@ SEXP ffi_sparse_dummy(SEXP x, SEXP lvls, SEXP counts, SEXP one_hot) {
 
   // Itterate over input, find its position index, and place the position value
   // at the index. Increment specific index.
-
-  if ((bool) one_hot) {
+  if (R_isTRUE(one_hot)) {
     for (R_xlen_t i = 0; i < len; ++i) {
       int current_val = v_x[i] - 1;
 
-      if (current_val == -1) {
-        continue;
-      }
-
       int index = v_pos_index[current_val];
 
       SEXP pos_vec = VECTOR_ELT(out, current_val);
@@ -103,6 +98,10 @@ SEXP ffi_sparse_dummy(SEXP x, SEXP lvls, SEXP counts, SEXP one_hot) {
     for (R_xlen_t i = 0; i < len; ++i) {
       int current_val = v_x[i] - 1;
 
+      if (current_val == -1) {
+        continue;
+      }
+
       int index = v_pos_index[current_val];
 
       SEXP pos_vec = VECTOR_ELT(out, current_val);
@@ -155,7 +154,7 @@ SEXP ffi_sparse_dummy_na(SEXP x, SEXP lvls, SEXP counts, SEXP one_hot) {
   // Itterate over input, find its position index, and place the position value
   // at the index. Increment specific index.
 
-  if ((bool) one_hot) {
+  if (R_isTRUE(one_hot)) {
     for (R_xlen_t i = 0; i < len; ++i) {
       int current_val = v_x[i];
 
@@ -174,10 +173,6 @@ SEXP ffi_sparse_dummy_na(SEXP x, SEXP lvls, SEXP counts, SEXP one_hot) {
         }
       } else {
         --current_val;
-        if (current_val == -1) {
-          continue;
-        }
-
         int index = v_pos_index[current_val];
 
         SEXP pos_vec = VECTOR_ELT(out_positions, current_val);
@@ -210,6 +205,10 @@ SEXP ffi_sparse_dummy_na(SEXP x, SEXP lvls, SEXP counts, SEXP one_hot) {
         }
       } else {
         --current_val;
+        if (current_val == -1) {
+          continue;
+        }
+
         int index = v_pos_index[current_val];
 
         SEXP pos_vec = VECTOR_ELT(out_positions, current_val);
diff --git a/tests/testthat/test-sparse_dummy.R b/tests/testthat/test-sparse_dummy.R
index 6dd3862..a977c47 100644
--- a/tests/testthat/test-sparse_dummy.R
+++ b/tests/testthat/test-sparse_dummy.R
@@ -1,12 +1,12 @@
-# one_hot = FALSE --------------------------------------------------------------
+# one_hot = TRUE --------------------------------------------------------------
 
-test_that("sparse_dummy(one_hot = FALSE) works with single level", {
+test_that("sparse_dummy(one_hot = TRUE) works with single level", {
   x <- factor(c("a", "a", "a"))
   exp <- list(
     a = c(1L, 1L, 1L)
   )
 
-  res <- sparse_dummy(x, one_hot = FALSE)
+  res <- sparse_dummy(x, one_hot = TRUE)
   expect_identical(
     res,
     exp
@@ -20,7 +20,7 @@ test_that("sparse_dummy(one_hot = FALSE) works zero length input", {
   x <- factor(character())
   exp <- structure(list(), names = character(0))
 
-  res <- sparse_dummy(x, one_hot = TRUE) 
+  res <- sparse_dummy(x, one_hot = FALSE) 
   expect_identical(
     res,
     exp
@@ -29,7 +29,7 @@ test_that("sparse_dummy(one_hot = FALSE) works zero length input", {
 
 ## anyNA = FALSE ---------------------------------------------------------------
 
-test_that("sparse_dummy(one_hot = FALSE) works with no NAs", {
+test_that("sparse_dummy(one_hot = TRUE) works with no NAs", {
   x <- factor(c("a", "b", "c", "d", "a"))
   exp <- list(
     a = sparse_integer(c(1, 1), c(1, 5), 5),
@@ -38,7 +38,7 @@ test_that("sparse_dummy(one_hot = FALSE) works with no NAs", {
     d = sparse_integer(1, 4, 5)
   )
 
-  res <- sparse_dummy(x, one_hot = FALSE) 
+  res <- sparse_dummy(x, one_hot = TRUE) 
   expect_identical(
     res,
     exp
@@ -49,7 +49,7 @@ test_that("sparse_dummy(one_hot = FALSE) works with no NAs", {
   )
 })
 
-test_that("sparse_dummy(one_hot = FALSE) works with no NAs and unseen levels", {
+test_that("sparse_dummy(one_hot = TRUE) works with no NAs and unseen levels", {
   x <- factor(c("a", "b", "c", "d", "a"), levels = letters[1:6])
   exp <- list(
     a = sparse_integer(c(1, 1), c(1, 5), 5),
@@ -60,7 +60,7 @@ test_that("sparse_dummy(one_hot = FALSE) works with no NAs and unseen levels", {
     f = sparse_integer(integer(), integer(), 5)
   )
 
-  res <- sparse_dummy(x, one_hot = FALSE) 
+  res <- sparse_dummy(x, one_hot = TRUE) 
   expect_identical(
     res,
     exp
@@ -73,7 +73,7 @@ test_that("sparse_dummy(one_hot = FALSE) works with no NAs and unseen levels", {
 
 ## anyNA = TRUE ----------------------------------------------------------------
 
-test_that("sparse_dummy(one_hot = FALSE) works with NA", {
+test_that("sparse_dummy(one_hot = TRUE) works with NA", {
   x <- factor(c("a", NA, "b", "c", "a", NA))
   exp <- list(
     a = sparse_integer(c(1, NA, 1, NA), c(1, 2, 5, 6), 6),
@@ -81,7 +81,7 @@ test_that("sparse_dummy(one_hot = FALSE) works with NA", {
     c = sparse_integer(c(NA, 1, NA), c(2, 4, 6), 6)
   )
 
-  res <- sparse_dummy(x, one_hot = FALSE) 
+  res <- sparse_dummy(x, one_hot = TRUE) 
   expect_identical(
     res,
     exp
@@ -92,7 +92,7 @@ test_that("sparse_dummy(one_hot = FALSE) works with NA", {
   )
 })
 
-test_that("sparse_dummy(one_hot = FALSE) works with NA and unseen levels", {
+test_that("sparse_dummy(one_hot = TRUE) works with NA and unseen levels", {
   x <- factor(c("a", NA, "b", "c", "a", NA), levels = letters[1:5])
   exp <- list(
     a = sparse_integer(c(1, NA, 1, NA), c(1, 2, 5, 6), 6),
@@ -102,7 +102,7 @@ test_that("sparse_dummy(one_hot = FALSE) works with NA and unseen levels", {
     e = sparse_integer(c(NA, NA), c(2, 6), 6)
   )
 
-  res <- sparse_dummy(x, one_hot = FALSE) 
+  res <- sparse_dummy(x, one_hot = TRUE) 
   expect_identical(
     res,
     exp
@@ -113,13 +113,13 @@ test_that("sparse_dummy(one_hot = FALSE) works with NA and unseen levels", {
   )
 })
 
-# one_hot = TRUE ---------------------------------------------------------------
+# one_hot = FALSE ---------------------------------------------------------------
 
-test_that("sparse_dummy(one_hot = TRUE) works with single level", {
+test_that("sparse_dummy(one_hot = FALSE) works with single level", {
   x <- factor(c("a", "a", "a"))
   exp <- structure(list(), names = character(0))
 
-  res <- sparse_dummy(x, one_hot = TRUE)
+  res <- sparse_dummy(x, one_hot = FALSE)
 
   expect_identical(
     res,
@@ -127,11 +127,11 @@ test_that("sparse_dummy(one_hot = TRUE) works with single level", {
   )
 })
 
-test_that("sparse_dummy(one_hot = FALSE) works zero length input", {
+test_that("sparse_dummy(one_hot = TRUE) works zero length input", {
   x <- factor(character())
   exp <- structure(list(), names = character(0))
 
-  res <- sparse_dummy(x, one_hot = TRUE) 
+  res <- sparse_dummy(x, one_hot = FALSE) 
   expect_identical(
     res,
     exp
@@ -140,7 +140,7 @@ test_that("sparse_dummy(one_hot = FALSE) works zero length input", {
 
 ## anyNA = FALSE ---------------------------------------------------------------
 
-test_that("sparse_dummy(one_hot = TRUE) works with no NAs", {
+test_that("sparse_dummy(one_hot = FALSE) works with no NAs", {
   x <- factor(c("a", "b", "c", "d", "a"))
   exp <- list(
     b = sparse_integer(1, 2, 5),
@@ -148,7 +148,7 @@ test_that("sparse_dummy(one_hot = TRUE) works with no NAs", {
     d = sparse_integer(1, 4, 5)
   )
 
-  res <- sparse_dummy(x, one_hot = TRUE)
+  res <- sparse_dummy(x, one_hot = FALSE)
   expect_identical(
     res,
     exp
@@ -159,7 +159,7 @@ test_that("sparse_dummy(one_hot = TRUE) works with no NAs", {
   )
 })
 
-test_that("sparse_dummy(one_hot = TRUE) works with no NAs and unseen levels", {
+test_that("sparse_dummy(one_hot = FALSE) works with no NAs and unseen levels", {
   x <- factor(c("a", "b", "c", "d", "a"), levels = letters[1:6])
   exp <- list(
     b = sparse_integer(1, 2, 5),
@@ -169,7 +169,7 @@ test_that("sparse_dummy(one_hot = TRUE) works with no NAs and unseen levels", {
     f = sparse_integer(integer(), integer(), 5)
   )
 
-  res <- sparse_dummy(x, one_hot = TRUE)
+  res <- sparse_dummy(x, one_hot = FALSE)
   expect_identical(
     res,
     exp
@@ -182,14 +182,14 @@ test_that("sparse_dummy(one_hot = TRUE) works with no NAs and unseen levels", {
 
 ## anyNA = TRUE ----------------------------------------------------------------
 
-test_that("sparse_dummy(one_hot = TRUE) works with NA", {
+test_that("sparse_dummy(one_hot = FALSE) works with NA", {
   x <- factor(c("a", NA, "b", "c", "a", NA))
   exp <- list(
     b = sparse_integer(c(NA, 1, NA), c(2, 3, 6), 6),
     c = sparse_integer(c(NA, 1, NA), c(2, 4, 6), 6)
   )
 
-  res <- sparse_dummy(x, one_hot = TRUE) 
+  res <- sparse_dummy(x, one_hot = FALSE) 
   expect_identical(
     res,
     exp
@@ -200,7 +200,7 @@ test_that("sparse_dummy(one_hot = TRUE) works with NA", {
   )
 })
 
-test_that("sparse_dummy(one_hot = TRUE) works with NA and unseen levels", {
+test_that("sparse_dummy(one_hot = FALSE) works with NA and unseen levels", {
   x <- factor(c("a", NA, "b", "c", "a", NA), levels = letters[1:5])
   exp <- list(
     b = sparse_integer(c(NA, 1, NA), c(2, 3, 6), 6),
@@ -209,7 +209,7 @@ test_that("sparse_dummy(one_hot = TRUE) works with NA and unseen levels", {
     e = sparse_integer(c(NA, NA), c(2, 6), 6)
   )
   
-  res <- sparse_dummy(x, one_hot = TRUE) 
+  res <- sparse_dummy(x, one_hot = FALSE) 
   expect_identical(
     res,
     exp