Independent contractor misclassification is a critical issue impacting workers and businesses across industries. Proper classification of workers as employees or independent contractors is fundamental not only to adhering to federal and state laws but also to seeking fair treatment, equitable compensation and access to essential benefits. Miller Shah addresses complex misclassification cases, offering support to both workers seeking justice and employers striving for compliance. Turn to our California independent contractor misclassification attorney for comprehensive guidance through your legal matter.
The distinction between employees and independent contractors lies in the nature of their working relationship and the associated legal rights and responsibilities. Employees typically work under the direct supervision of an employer, adhere to schedules and rules set by the employer, and rely on tools, training and resources provided by the company. They are generally entitled to benefits such as overtime pay, vacation time, health insurance, workers’ compensation coverage and other legal protections under federal and state statutes.
Independent contractors, on the other hand, retain significant control over their work. They set their own schedules, provide their own tools, and usually work for multiple clients. They do not rely on employer-provided benefits or training. While the flexibility of being an independent contractor can be appealing to some, this classification excludes them from receiving critical protections afforded to employees, such as minimum wage guarantees or access to unemployment benefits.
Employee misclassification occurs when workers are improperly designated as independent contractors. This practice may stem from employers’ efforts to reduce payroll expenses, avoid paying taxes or benefits or to circumvent labor laws. Regardless of intent, misclassification denies workers the rights and protections they are entitled to under the law.
The financial impact on misclassified employees can be significant. Workers labeled as independent contractors may miss out on overtime compensation even when they consistently exceed 40 hours per week. They may not have access to paid sick leave, health insurance or other benefits commonly offered to employees. Misclassification can also increase tax burdens on workers, as contractors must pay a higher share of Social Security and Medicare taxes (self-employment tax) than employees.
Beyond financial implications, misclassified employees may lack recourse against workplace harassment or discrimination, suffer insufficient workplace protections and face long-term consequences for their retirement and financial security. These challenges make it essential for those affected to seek professional advice and pursue corrective measures.
Workers who suspect they have been misclassified as independent contractors have several options to address their situation. Some cases can be resolved through negotiation with the employer or arbitration. For more complex claims involving violations of federal and state laws, litigation may be necessary.
At Miller Shah, our team of employment law attorneys has extensive experience navigating the complexities of misclassification cases. Over the years, we have successfully represented employees in recovering lost wages, overtime compensation, benefits and damages. Our experience includes handling matters pursuant to the Fair Labor Standards Act, state-specific labor laws and class action litigation for groups of similarly affected employees.
Our firm also provides legal counsel to employers seeking to comply with evolving employment classification laws. We guide businesses through audits and help implement sustainable practices to reduce the risk of inadvertent misclassification, promoting compliance that benefits both employers and their workforce.
If you believe you have been misclassified as an independent contractor or are navigating employment classification challenges, Miller Shah is here to help. Our skilled attorneys are committed to providing the clear guidance and effective representation you need. Contact our California independent contractor misclassification attorney to schedule a consultation.