Independent contractor misclassification arises when an employee is improperly categorized as an independent contractor instead of as an employee. The distinction between these classifications directly affects workers’ rights, including access to benefits, overtime wages, and legal protections. Misclassified workers may face unfair treatment, denial of benefits, and financial losses, while employers engaging in misclassification expose themselves to potential legal and financial liabilities. This issue has grown more common in the modern economy, as changing needs result in new work arrangements. A New York City independent contractor misclassification attorney at Miller Shah can help you addresses the significant issue of misclassification in your workplace.
Employers and workers alike should understand the legal criteria used to determine whether someone is an employee or an independent contractor. Although specific factors vary between states, tests commonly assess the degree of control and independence exercised by workers. For instance, employees typically follow schedules set by their employer, use employer-provided tools, and work exclusively for their employer’s company. Independent contractors, on the other hand, have greater autonomy, set their own schedules, supply their own tools, and often work for multiple entities.Â
Failing to correctly categorize workers can lead to violations of the Fair Labor Standards Act (FLSA) and state labor laws. Employers aiming to avoid obligations like payroll taxes, health benefits, or workers’ compensation premiums may intentionally or unintentionally misclassify workers. However, such actions are not only unethical but also illegal, warranting legal recourse for affected individuals.Â
Certain industries are particularly prone to worker misclassification. These include delivery and transportation, construction, entertainment, technology, healthcare, and the growing gig economy. For example, ride-sharing companies and food delivery services frequently classify drivers as independent contractors, denying them benefits like overtime pay and health insurance. Similarly, construction firms may misclassify workers to circumvent tax and benefit obligations.Â
Regardless of the industry, misclassification places undue burdens on workers while providing employers with an unfair competitive advantages over law-abiding businesses.
The consequences of misclassification are far-reaching. For workers, it can mean earning less in wages, being denied benefits such as retirement plans and insurance, and missing out on protections like unemployment benefits or workers’ compensation. Employers are not immune to repercussions, either—they risk significant financial penalties, back pay awards, and reputational damage if found to be in violation of labor laws.Â
At Miller Shah, we are passionate about securing justice and fairness for all workers. We have decades of experience handling complex employment misclassification cases, and our skilled New York attorneys are well-versed in state and federal employment laws and are committed to securing the maximum benefits and protections for misclassified workers. We offer comprehensive legal solutions, from negotiating settlements to pursuing litigation.
Miller Shah brings experience and a proven track record to resolving these issues. Whether you are a misclassified worker or an employer seeking compliance assistance, our firm offers professional and thorough counsel tailored to your needs.Â
If you believe you have been misclassified as an independent contractor, take action today to recover the wages, benefits, and protections you deserve. Contact a dedicated New York City independent contractor misclassification attorney at Miller Shah for a consultation and learn how we can advocate for your rights.