Employee misclassification is a pressing issue in today’s gig economy, affecting the wages, benefits, and legal protections to which workers are entitled. Proper classification of workers as either employees or independent contractors is crucial for maintaining fairness and compliance with labor laws. The San Francisco employee misclassification lawyers at Miller Shah LLP recognize that misclassification can have serious consequences, including impacting workers’ livelihoods and imposing significant legal repercussions for employers. We combat this important legal area head on, both by consulting employers seeking to understand their classification obligations and by providing legal representation to individuals who have been misclassified.
Employee misclassification occurs when an employer incorrectly classifies a worker as an independent contractor instead of as an employee, or as an employee exempt from the protections of the Fair Labor Standards Act (FLSA) and other statutes instead of as a non-exempt employee. These improper classifications can lead to workers being denied essential rights and benefits, including overtime pay, vacation time, meal breaks, workers’ compensation, and other legal protections.
One of the most common forms of misclassification is when an employer incorrectly deems an employee to be an independent contractor. Independent contractors are typically not entitled to the same benefits and protections as employees, such as health insurance, retirement plans, business expense reimbursement, and unemployment benefits. This misclassification allows employers to evade paying payroll taxes and providing benefits, unfairly shifting the burden onto the worker.
Within employee classifications, there are exempt and non-exempt categories. To qualify as an exempt employee, a worker must meet certain salary and job duty criteria, often applicable only to executive, administrative, or professional employees. Exempt employees are not eligible for minimum wage or overtime pay standards under the FLSA. Misclassifying a non-exempt employee as exempt can thus result in significant unpaid overtime wages, which can accumulate over time.
Misclassification can lead to severe financial consequences for both the worker and the employer. Workers may lose out on wages, benefits, and protections, while employers might face costly lawsuits, back pay settlements, penalties, and damage to their reputation. Furthermore, many state laws offer stronger worker protections than the FLSA, complicating the legal landscape.
Employee misclassification poses significant challenges, but with the right legal representation, affected workers can reclaim their rights and benefits. If you believe you have been misclassified, it is vital to seek the counsel of an experienced employment classification attorney. Legal counsel can help evaluate your situation, negotiate with your employer, and institute a lawsuit. By understanding your rights and seeking professional legal counsel, you can address this critical issue head-on. Â
The skilled lawyers at Miller Shah have successfully represented employees in individual and class action lawsuits concerning violations of federal and state statutes, as well as the FLSA. We can help aggrieved employees navigate the complexities of these cases and secure the compensation they deserve for lost wages and benefits. Our San Francisco team is strategically positioned to serve a diverse portfolio of clients effectively. Furthermore, we provide access to comprehensive legal and accounting resources worldwide, ensuring our clients receive top-tier service regardless of where they are located.
Miller Shah is committed to assisting those who have been wronged by misclassification. Contact us to discuss your case with our San Francisco misclassification lawyers today.