Independent contractor misclassification is an unlawful practice where an employer improperly labels a worker as an independent contractor when they are legally an employee. This is a significant problem because it denies workers fundamental protections and benefits, like rights to minimum wage, overtime pay, meal and rest breaks, and more.
Independent Contractor Misclassification
Our attorneys understand misclassification matters can be frustrating.
Independent Contractor Misclassification Attorneys
Employers cannot avoid protections and benefits that extend to employees by misclassifying workers as independent contractors. Misclassification, however, is a common problem for workers across a wide range of industries including but not limited to janitors, massage therapists, physical therapists, fitness instructors, truck drivers, laborers, and gig economy workers. Misclassification often leads to underpayment of wages, unreimbursed business expenses, and lack of protections and benefits such as health insurance, workers’ compensation insurance, and employer contributions to Social Security. Our firm has decades of experience challenging unlawful misclassification schemes and recovering millions of dollars for our clients.
Whether an individual is an independent contractor depends on certain legal tests. In California, to prove that an individual is not an employee, an employer must demonstrate all of the following (known as the ABC Test):
- That the worker is free from the control and direction of the employer in connection with the performance of the work. If your employer retains the right to tell you when and how to work, to supervise or discipline you, or to tell you what to wear or how to act, the employer will probably not be able to demonstrate that you are free from control and direction;
- That the worker performs work that is outside the usual course of the employer’s business. If your company sells janitorial services, for example, and you perform the work of a janitor for the company, the employer will probably not be able to prove that your work is outside of the usual course of their business; and
- That the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed. If you do not have a separate business and do not perform work for multiple companies, your company will probably not be able to prove this part of the test.
Our firm has been fighting independent contractor misclassification for decades. We have recovered millions of dollars in unpaid wages and unreimbursed business expenses for our clients. If you think you have been misclassified, contact our legal team today.
FAQs About Misclassification in California
Why do employers misclassify workers as independent contractors?
A company may label a worker as an independent contractor to bypass its obligations to pay payroll taxes, contribute to Social Security, provide workers’ compensation insurance, and offer employee benefits. This unlawful scheme shifts the financial burdens of employment onto the worker, unfairly increasing the company’s profits.
How does California law define an independent contractor versus an employee?
The presumption of California law is that a worker is an employee. The burden is on the employer to prove that a worker is a true independent contractor. The law uses a strict test, known as the ABC Test, to discern whether a worker is genuinely in business for themselves or is functionally an employee.
What are my rights if I have been misclassified as an independent contractor?
If you have been misclassified, you have the right to file a claim with the Labor Commissioner’s Office and seek reimbursement of the wages, benefits, and protections you were unlawfully denied.
What evidence can support a misclassification claim?
Documents related to your work, like contracts or agreements you signed, pay statements, and communications with the company, can all be essential evidence. It may also be helpful to document components such as the level of control the company exercises over your work, the equipment you are required to use, and any business expenses you have incurred.
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