What Is Employee Misclassification?
Employee misclassification occurs when an employer deliberately or mistakenly classifies a worker as not being an employee but instead labels them as independent contract workers. This happens when the worker provides services for pay and is subject to control by the employer in most aspects of their job. An example of this type of misclassification can be found in many industries, from retail to medical.
Determining whether you’re a regular employee or an independent contractor is important as it determines your tax liability and how you are paid. The classification of employees impacts your paycheck, benefits, and taxes. It’s important to know what category you fall into and whether or not you’re being misclassified by your employer.
How Can I Tell If I Have Been Misclassified?
Relationship of the Parties
- Does your employer dictate when, how, and where you do the job?
- Do you have a supervisor at your job site?
- Are you paid by the hour and expected to work for a certain number of hours per week?
- Are the tools and equipment you use provided by your employer?
- Are the work you perform an integral part of your employer’s business?
- Do your duties benefit the employer on an ongoing or permanent benefit?
What Should I Do If I’ve Been Misclassified?
The first thing to do if you find out that you’ve been misclassified as a contractor when you do your job as an employee is to understand your rights under the Fair Labor Standard Act (FLSA). All regular employees are entitled to overtime wages and other employee benefits. The law under the FLSA determines that workers be paid up to three years of denied wages.
Contact Josephson Dunlap LLP with MyBackWages to book a free consultation. Our attorneys have experience representing employees who have been misclassified and are familiar with the laws surrounding employee misclassification.