Are you earning less than your colleagues, missing overtime pay or working without the benefits you deserve? It can be outright frustrating and confusing. For many workers in California, this isn’t bad luck – it’s misclassification. You may be labeled an independent contractor, yet you’re an employee by law.
Being misclassified can impact your paycheck, work benefits and legal protections. Most workers don’t even realize that they’ve been stripped of crucial rights because everything looks ‘normal’ when, in fact, they are losing out on a lot.
How misclassification affects your pay
Misclassified workers often earn less than employees doing similar work. You may be missing out on minimum wages, overtime pay, paid sick leave, health insurance, workers’ compensation and unemployment insurance. This is because California wage laws only apply to employees, not independent contractors.
It doesn’t stop there. Most misclassified workers are forced to cover work-related expenses out of pocket. These include tools, mileage or equipment that proper employees would normally get reimbursed for. You’ll also pay higher taxes when you’re mislabeled as an independent contractor since you don’t share the tax burden with your employer.
Spotting the red flags
Some of the tell-tale signs that you’ve been misclassified as an independent contractor include the following:
- Your employer controls how you work by setting your schedule, dictating your methods or requiring you to work specific hours.
- Your work is central to the business. In other words, you’re doing the main type of work the company is known for. For instance, if you’re a driver for a delivery company, you are likely integral to their business, and not a separate contractor.
- You don’t run an independent business in the same field or provide similar services to other clients.
Should any of the above apply to your job, you may legally be an employee, and you shouldn’t let it slide. It doesn’t matter if you signed a contract stating otherwise. The law looks at how the work is actually performed, not what the paperwork says.
If you think you’ve been misclassified and you’re not able to resolve the matter successfully with your employer, getting experienced legal guidance can give you a qualified assessment of your situation. It can help you understand your options and take informed action to assert your legal rights.
