Independent Contractor Misclassification

Employees are provided certain legal protections under the Fair Labor Standards Act (FLSA), including minimum wage requirements and overtime pay requirements. However, not all workers are considered employees, as some are classified as independent contractors. Employers who misclassify these workers as independent contractors instead of employees can be on the hook for substantial penalties. Additionally, the workers may lose out on statutory benefits that are required to be provided to full-time employees. Dive into the details below to learn the difference between an employee and an independent contractor as well as what to do if you think you have been misclassified.

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You need an employment attorney who is experienced in understanding the intricacies of both Federal and California employment law. Sparrow Law Group understands that employment matters are often very personal, and we take the time to get to know you personally so that we can fully understand your case. Our caring and compassionate attorneys will craft a winning strategy that is specific to you and your situation, as you will never be just a generic case number in our office. We care about you, and we are ready to fight to get you the results you deserve.

Independent Contractor Vs Employee: What’s The Difference?

There are several differences between an employee and an independent contractor, but making the distinction between the two is not always as straightforward as it might seem. There are some basic differences between the two. For example, independent contractors are responsible for paying their own employment taxes, while employers are responsible for some portion of each employee’s payroll taxes. Employees are typically eligible for company benefits, like health insurance or retirement plans, while independent contractors do not usually receive these benefits.

So, how can you tell whether someone is an employee or an independent contractor? The Fair Labor Standards Act contains sections that are used to distinguish an employee from an independent contractor (29 CFR part 795). The Economic Reality Test (29 CFR § 795.110) is one of the main ways to determine whether an employee relationship exists. This test consists of many factors, including the nature and degree of control, the permanence of the relationship, investments by the worker and employer, and several others. In California, the ABC Test is often used to determine a worker’s status. Here, a worker is deemed an employee unless the employer can prove all three prongs of the test—the worker must be free from the direction and control of the employer, the worker must perform work outside the normal course of business of the employer, and the worker must customarily engage in the type of work being performed.

What To Do If You Think You Have Been Misclassified

If you believe you have been improperly classified as an independent contractor, you should seek the assistance of a California employment law attorney right away. You could be missing out on rights and compensation that are owed to you by law. A lawsuit might be necessary, and your employer may be required to compensate you for unpaid wages, benefits, interest on those amounts, and attorneys’ fees.

Contact An Employment Law Attorney Today

You have a limited amount of time to file employment-related claims in California, so you should contact an employment law attorney as soon as you become aware of a potential issue. The experienced attorneys at Sparrow Law Group can guide you through the process, and we’ll be your trusted ally along the way. Contact us today to let us help you.