Understanding and properly applying the complexities of employee classification laws is essential for both employees and employers to avoid the significant legal and financial implications of misclassification. Proper classification determines wage and benefits entitlements for employees, and tax obligations and compliance with labor laws for employers. Misclassification, on the other hand, not only undermines workers’ rights, but also exposes employers to substantial liability. A Los Angeles misclassification of workers attorney can help avoid these pitfalls. Miller Shah helps clients keep up with evolving laws and the intricate nature of misclassification cases, providing comprehensive and sophisticated support to protect your interests.Â
Employee misclassification occurs when an employer incorrectly categorizes an individual as an independent contractor instead of an employee, or improperly designates an employee as exempt from the overtime protections of the Fair Labor Standards Act (FLSA). This could result from a misunderstanding of the law or, in some cases, a deliberate attempt to minimize costs.Â
The distinction between employees and independent contractors is vital. Employees are entitled to minimum hourly wages, overtime pay, and statutory benefits and protections afforded under federal, state, and local laws. Independent contractors, on the other hand, are not covered under these protections and do not enjoy these rights.
The difference between exempt and non-exempt employees is also crucial. Employees that are deemed FLSA-exempt, often in executive or administrative roles, do not qualify for overtime pay, while non-exempt employees do.
These classifications carry distinct legal obligations, and misclassification in any form results in serious consequences.Â
For workers, being misclassified can have far-reaching implications. Employees who are wrongly deemed independent contractors often lose access to critical benefits, such as paid time off, health insurance, and employer contributions to Social Security and Medicare. Misclassified workers are often deprived of key workplace protections, including unemployment insurance, Workers’ Compensation coverage, and compliance with workplace safety laws.Â
Additionally, Non-exempt employees who are incorrectly classified as exempt may miss out on overtime wages owed to them for hours worked beyond the 40-hour workweek. Thus, misclassification not only diminishes worker protections but can also lead to substantial losses in wages and the denial of fair treatment.Â
The financial and emotional toll of misclassification is exacerbated by the inherent challenges workers face when trying to rectify their situation. The complexities of employment law discourage action among those who are wronged. Moreover, workers may feel intimidated about filing claims for fear of retaliation by employers.Â
Miller Shah has built a reputation for delivering results in even the most challenging misclassification cases. Our attorneys bring a deep understanding of federal and state wage laws, offering guidance for both workers and employers navigating this complex field of law. Whether handling individual claims or representing groups in class action lawsuits, we are committed to achieving just outcomes.Â
Our experience spans a wide array of industries, from gig economy companies to traditional businesses with complex workforce structures. Over the years, we’ve recovered more than $1 billion for our clients across various litigation matters—a testament to our diligence and legal acumen.Â
The issue of employee misclassification is becoming increasingly prominent as laws struggle to keep up with the demands of the rapidly changing modern workplace. Whether you are a worker who has been denied fair compensation or an employer striving to comply with shifting legal requirements, Miller Shah is here to help. Contact a Los Angeles misclassification of workers attorney today for a confidential consultation. Together, we can address your concerns and deliver the results you deserve.