Employee misclassification can affect the financial and personal wellbeing of workers by denying them rightful wages and benefits. At Miller Shah LLP, we recognize the significant impacts of employee misclassification, and our California misclassification attorneys are dedicated to offering reliable legal counsel to address these challenges head-on. Our legal team has years of experience assisting clients in navigating the complexities of misclassification cases, empowering workers and ensuring their rights are protected.Â
Employee misclassification occurs when a worker who should be considered an employee under the law is labeled as an independent contractor. The distinction between an employee and an independent contractor is critical, as it determines eligibility for numerous benefits and protections mandated by federal and state laws.
Misclassification can arise from various situations, ranging from genuine errors in interpreting legal standards and classification criteria to intentional mislabeling by employers aiming to circumvent employment laws and reduce costs. These costs include payroll taxes, minimum wage payments, overtime compensation and contributions to unemployment and workers’ compensation funds.
The potential repercussions for misclassified workers are significant. Employees wrongly classified as independent contractors may be deprived of essential benefits such as overtime pay, health insurance, and retirement plans. Furthermore, misclassification can lead to a lack of legal protections against unfair labor practices. For employers, the consequences of misclassifying employees can be equally severe, including legal and financial penalties, backpay awards, and damage to reputation.
The Fair Labor Standards Act (FLSA) plays a pivotal role in protecting workers by setting minimum wage, overtime pay, record-keeping, and youth employment standards. While different states have their own additional requirements and tests, the FLSA outlines clear criteria for determining whether a worker is an employee or an independent contractor.Â
Certain categories of employees, known as exempt employees, are not covered by some of the FLSA’s protections. Exempt employees typically hold executive, administrative, professional, outside sales, or specific computer-related positions. To qualify as exempt, employees must meet particular salary and job duty criteria, which exempt them from minimum wage and overtime requirements under the FLSA. However, employers sometimes misunderstand or abuse these specifications and misclassify employees as exempt, wrongfully depriving them of FLSA protections.
Employee misclassification undermines rights and protections for countless workers. The California legal team at Miller Shah has impressive experience tackling the intricacies of misclassification issues. We offer comprehensive legal support, from evaluating the validity of a misclassification claim to representing clients in litigation to recover lost wages and benefits.
Our deep understanding of employment classification laws and dedication to client advocacy allows to secure favorable outcomes for our clients. Whether you are an employee grappling with the ramifications of misclassification or an employer seeking guidance on compliance issues, Miller Shah can provide the high quality legal assistance you need.
Employee misclassification is a critical issue with far-reaching implications for workers and employers. Understanding your rights and obligations within this legal framework is essential. If you suspect that you or someone you know has been misclassified, do not hesitate to reach out to the California employee misclassification attorneys at Miller Shah. We are committed to ensuring that misclassified workers receive the compensation and protections to which they are rightfully entitled. Contact us today for a confidential consultation.