Did My Employer Misclassify Me to Avoid Paying Overtime? 

Many workers dedicate long hours to their jobs, yet never see a premium on their paychecks. For non-salaried employees, this can be more than a few missed wages; this can be a violation of their rights under state and federal laws. If you suspect that your employer is withholding wages you should rightfully be paid, you must understand the legal definitions of your employment status and the rights you have as a result.

Your employer might have misclassified you to avoid paying overtime if any of the following situations apply to your job:

• You are labeled an independent contractor, yet your employer dictates your schedule and methods.
• You receive a salary, but it is below the required federal minimum, or your daily tasks involve routine manual labor rather than true managerial duties.
• You work more than forty hours a week without receiving time-and-a-half compensation.

Olivier & Schreiber PC represents clients in California and nationwide who have experienced violations of their rights under employment law. Our dedicated attorneys are committed to advancing the rights of workers facing workplace injustices, including those who have been misclassified and underpaid.

How Does the Law Determine if You Are an Employee or an Independent Contractor?

The United States Department of Labor uses specific guidelines under the Fair Labor Standards Act (FLSA) to determine employment status. An employer cannot simply label you an independent contractor to avoid providing benefits and overtime pay; you must meet the conditions required to be an independent contractor to be designated as such.

• Control over work: Employees typically have their schedules and daily tasks heavily controlled by the employer.
• Financial reality: Independent contractors operate independent businesses and risk suffering a financial loss or stand to make a profit.
• Permanence of the relationship: Employees usually maintain a continuous, indefinite relationship with the employer, while contractors’ work is project-based.

If your work reality resembles that of an employee more than an independent contractor despite being labeled as a contractor, you may be rightfully owed overtime pay. Note that the state of California has even stricter requirements for classifying someone as a true independent contractor, further protecting employees’ rights.

What Is the Difference Between Salary Misclassification and Duty-Based Misclassification?

Receiving a salary does not automatically exempt you from receiving overtime pay, as employers may apply salary classifications improperly in an attempt to cut costs. For instance, salary misclassification occurs when an employer pays you a fixed salary, but your total income falls below the legal minimum threshold for the salary exemption. Duty-based misclassification, meanwhile, happens when an employer gives you a managerial title to justify a salary, yet your actual daily duties do not require independent judgment or advanced administrative knowledge. Both of these forms of misclassification can keep employees from receiving compensation for overtime work.

What Are Signs That Your Employer Should Pay You Overtime Wages?

You will need to carefully evaluate your specific employment situation to determine if you are legally entitled to premium overtime pay. You may want to consult a legal professional if you notice these signs:

• You are paid a fixed wage, yet work more than forty hours in a single workweek on a regular basis.
• You are classified as an independent contractor, yet exactly how, when, and where you perform your job functions is dictated by a manager.
• You have a managerial role, yet do not have the authority to hire, fire, or discipline other personnel.

Take Steps to Recover Your Rightful Wages

Misclassifying employees is a serious problem that deprives hardworking people of their rightful earnings, from those on construction sites to those in retail stores and the hospitality industry. You do not have to attempt to overcome these legal hurdles alone. The attorneys at Olivier & Schreiber PC have years of experience in employment law litigation and settlements. We offer compassionate legal support to empower you during these stressful times. Contact our firm today for a comprehensive evaluation of your situation.