Los Angeles Employee Misclassification Attorneys

Employee misclassification occurs when employers incorrectly classify their workers as independent contractors instead of employees or as employees exempt from the protections and standards of the Fair Labor Standards Act (FLSA) and other statutes. This misclassification has significant consequences for both employers and employees: For employers, incorrect classification can mean severe legal repercussions and financial penalties. For employees, misclassification can cause lost wages, denied benefits and compromised legal rights. The Los Angeles employee misclassification attorneys at Miller Shah LLP recognize the severity of these stakes and are committed to advocating for misclassified workers and helping employers adhere to the law.

Common Forms of Misclassification

Independent Contractors vs. Employees

One prevalent misclassification scheme is categorizing regular employees as independent contractors. Employers may do this to save on wage-related expenses and employment taxes. However, independent contractors operate with a degree of autonomy and control over their work that employees typically do not have, so employers exercising great control over when and how their workers complete tasks should be wary of classifying them as independent contractors. Misclassifying an employee as an independent contractor can cheat them out of vital benefits and protections, and can result in expensive legal action for employers.

Exempt vs. Non-Exempt Employees

Another common form of misclassification involves labeling non-exempt employees as exempt. Non-exempt employees qualify for protections under the FLSA, including overtime pay and minimum wage. However, employers need not apply the same standards to exempt employees. To qualify as exempt, an employee must meet certain salary and job duty requirements. By misclassifying non-exempt employees as exempt, employers deny them their lawful compensation.

The Implications of Misclassification for Employees

Employers may deliberately misclassify workers to reduce labor costs and gain a competitive edge by evading the requirements to pay fair wages and employment taxes and provide statutory benefits. Such practices are illegal and unethical, leading to a host of financial and legal challenges for affected employees.

Financial Consequences

Misclassification deprives employees of their rightful earnings and benefits. Workers classified as independent contractors or exempt employees often miss out on overtime pay, vacation time, meal breaks and other compensatory benefits. They are also responsible for self-employment taxes, which would otherwise be covered by the employer if correctly classified.

Legal Protections and Rights

Misclassified workers lose crucial legal safeguards. For example, non-exempt employees are entitled to protections under various state laws and the FLSA, which mandates minimum wage and overtime pay at one-and-a-half times their usual rate. Misclassifying workers denies them these statutory rights. Additionally, misclassified employees may not be covered under Workers’ Compensation laws, leaving them vulnerable in cases of workplace injury.

The Role of a Los Angeles Employee Misclassification Attorney

Employee misclassification is a serious issue with far-reaching consequences for workers and employers alike. It is essential for workers to understand their rights and for employers to comply with classification laws to avoid legal repercussions.

Miller Shah has a proven track record of holding negligent or exploitative employers accountable. Our team of skilled employment classification lawyers has extensive experience representing misclassified employees in lawsuits concerning federal and state statutes, including the FLSA. We are dedicated to leveraging our legal advocacy to secure compensation for lost wages and benefits and achieve the outcomes employees need.

If you believe you have been misclassified, contact our Los Angeles employee misclassification attorneys today.