Employee Misclassification Attorney New York City

Misclassification of workers is a critical issue that affects wages, taxes, and rights to benefits such as overtime pay, vacation time, meal breaks, workers’ compensation, and legal protections.  Miller Shah LLP is committed to providing high-quality legal services to both workers and employers navigating these intricate challenges. Our employee misclassification attorneys in New York City have an international reputation for delivering sophisticated solutions and impressive results in complex, high-stakes employment cases.

The Significance of Proper Classification

Proper classification of workers as either employees or independent contractors is paramount for several reasons. For workers, misclassification can result in lost wages and benefits, while employers may face substantial financial penalties and legal disputes. Understanding these distinctions not only ensures compliance with evolving laws but also protects the rights and interests of all parties involved.

Employees vs. Independent Contractors

Proper classification begins with understanding the difference between independent contractors and employees.  An employee is typically someone who works under the direction and control of an employer, receives a regular salary, and is entitled to various benefits and protections under labor laws. These include health insurance, workers’ compensation, and eligibility for overtime pay.  In contrast, an independent contractor operates more autonomously, providing services under a contract and taking on the risk and reward of their entrepreneurial endeavors. They are responsible for their own taxes and do not receive the same benefits and protections afforded to employees.

The distinctions between employees and independent contractors are crucial for several reasons:

• Tax Implications: Employers are required to withhold income taxes, contribute to Social Security and Medicare, and pay unemployment taxes on wages paid to employees. Independent contractors handle these responsibilities themselves.
• Benefits and Protections: Employees are entitled to benefits such as health insurance, retirement plans, and protection under laws like the Fair Labor Standards Act (FLSA). Independent contractors do not receive these benefits.
• Control and Independence: Employees typically work under the employer’s control regarding what, how, and when tasks are completed. Independent contractors have more freedom to set their schedules and determine how to perform their work.

Legal and Financial Consequences of Misclassification

Misclassifying employees as independent contractors can lead to significant legal and financial repercussions for businesses. Companies may face:

• Lawsuits and Settlements: Misclassified workers may file claims for unpaid wages and benefits, leading to costly lawsuits and settlements.
• Back Taxes and Penalties: Employers may be required to pay back taxes, interest, and penalties if workers are found to be misclassified.
• Damage to Reputation: Legal disputes and penalties can harm a company’s reputation, affecting its ability to attract talent and conduct business effectively.

Combatting Employee Misclassification with Miller Shah

Miller Shah’s employment classification lawyers provide sophisticated legal counsel to help clients untangle the complexities of misclassification. We offer counseling to employers to ensure they comply with relevant classification regulations, and we have represented employees in lawsuits concerning violations of federal and state statutes, including the Fair Labor Standards Act (FLSA).  With multiple offices throughout the United States and overseas, we are well-positioned to serve a diverse portfolio of clients.

Our New York City Employee Misclassification Attorneys Advocate for You

Addressing employee misclassification is an important step to prevent and correct wage and hour issues, among other legal matters. Whether you are a worker seeking to protect your rights or an employer navigating the complexities of employment classification law, Miller Shah is here to help. Contact our employee misclassification attorneys in New York City to discuss your case with our experienced legal team.