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Misclassified Independent Contractors

Companies often categorize workers as independent contractors to avoid paying overtime and minimum wage. But just because a company calls a worker an independent contractor and makes them sign an independent contractor agreement doesn’t magically give independent contractor status. True independent contractors are typically in business for themselves and work various jobs on a contract basis.
Your legal classification depends on the weighing of several factors, such as the degree of control your employer exercises over your work, your investment in the business, your opportunity for profit or loss beyond your regular wage, your reliance on a specialized skill, the permanency of your working relationship, and the extent to which your work is integral to the employer’s business.
Why do businesses want to categories workers as independent contractors and not employees?  Money – businesses that use contractors rather than traditional employees save a lot of money, because independent contractors are generally not entitled to the same types of protections and benefits, such as the minimum wage requirement, overtime premiums, worker’s compensation, and unemployment insurance. Misclassification also creates a disadvantage for competitor companies that classify their workers correctly and pay them as employees.

If you believe you have a potential misclassified independent contractors claim, please contact us for an evaluation

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