Accurately classifying employees is more than a matter of administrative detail—it is a critical aspect of ensuring fair treatment, equitable pay, and access to essential benefits and protections under the law. In fact, the distinction between an employee and an independent contractor affects a worker’s wages, taxes, benefits, and other legal rights. For instance, a worker inaccurately classified as an independent contractor rather than an employee may miss out on overtime pay, vacation time, meal breaks, workers’ compensation benefits, and other legal protections to which she is entitled.
Employee misclassification is, unfortunately, on the rise, as companies in the age of the internet and gig economy seek to benefit from the flexibility of on-demand workers without the responsibilities that come with proper employee classification. These violations can lead to serious long-term consequences for workers, including insufficient protections in the workplace, lost wages, and denied benefits.
While different state legal schemes have varying definitions of the difference between an employee and an independent contractor, generally, employees work according to schedules set by their employer, use the employer’s equipment, receive training from or through the employer, and work exclusively for one employer, while independent contractors set their own hours, use their own tools, do not need employer-provided training, and can work for multiple companies.
Incorrectly treating employees as independent contractors exempts workers from the rights and benefits due to them as employees under federal and state law. Employers might engage in this practice to reduce payroll taxes, avoid paying for Workers’ Compensation insurance, circumvent health insurance obligations, or bypass federal employment laws. Whatever the reason, employee misclassification is illegal, and employers should be held accountable for violating workers’ rights.
Workers who suspect they have been misclassified as independent contractors have multiple legal and non-legal options to resolve their situations, including negotiation, arbitration, and litigation. As employment classification claims often involve both state and federal law, sophisticated legal counsel can be indispensable to properly manage complex employment law cases. The team at Miller Shah LLP is committed to explaining every step of the way.
Miller Shah’s experienced employment attorneys have a proven track record of advocating for both workers and employers in misclassification cases. Whether you are a worker who has been misclassified as an independent contractor or an employer seeking to navigate the shifting landscape of employment classification law, the team at Miller Shah LLP can help. Our skilled attorneys are ready to provide you with the dedicated legal guidance needed to address and resolve misclassification issues.
Miller Shah LLP delivers sophisticated solutions and impressive results for our clients across various legal matters. Our team’s success is driven by our unique ability to understand and meet our clients’ needs.
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To learn more about how we can assist with your employee misclassification needs, contact any of our offices today.