Independent Contractor Misclassification

Many businesses label their workers as “independent contractors” even though in reality they are employees. Technology is changing the way we view workers and there appears to be a trend towards misclassifying workers as independent contractors.

Generally, a worker can be considered an independent contractor only if the employing entity establishes all three prongs:

1. The worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;
2. The worker performs work that is outside the usual course of the hiring entity’s business; and
3. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity. 

The law does provide for certain types of workers that are exempt from this law. Contact an attorney to find out if you are properly classified as an independent contractor.

Misclassified Independent Workers are Deprived of Many Rights and Protections:

• Independent contractors are not subject to California minimum wage and overtime protections;
• Independent contractors have no workers’ compensation coverage if injured on the job, no right to family leave;
• Independent contractors have no unemployment insurance;
• Independent contractors have no protection against employer retaliation.
• Often employers misclassify workers for nefarious reasons such as avoiding payment of workers compensation for employees, avoiding payment of employer’s share of the workers payroll tax, avoiding paying minimum wage and providing lawful meal and rest periods, and avoiding , paying minimum and overtime wages, providing meal and rest periods.  The misclassification of employees is illegal and carries substantial penalties.

Call Duel Law Firm Today!