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What is Employment Misclassification in Ventura, CA?
Employee misclassification is a serious legal matter that could potentially result in legal and financial consequences for employers in California. Sometimes, employment misclassification occurs by accident. Whereas other times, employers may look to exert a certain level of control over their employees and their wages by misclassifying them as independent contractors or exempt workers. As a result of being misclassified as an independent contractor, a regular employee could lose important benefits and protections, such as workers’ compensation benefits, overtime pay, and minimum wage requirements.
To avoid employment misclassification, employers must understand the differences between the different types of employees, exempt employees, and independent contractors. In most circumstances, employees under the employer’s control have less freedom than independent contractors. Factors that could determine whether a worker is an employee or an independent contractor may include the degree of control the employer or management has over the worker, the permanency of the working relationship, and the profit or loss opportunities for the worker.
Sometimes, employers may hire independent contractors and treat them as employees. By doing this, the employer avoids paying taxes, following wage and hour regulations, does not need to abide by anti-discrimination laws, and can choose not to provide workers’ compensation benefits. Ultimately, misclassifying workers saves California employers money. However, it is also considered fraud and can be met with penalties.
What is an Independent Contractor in the California Workforce?
As an independent contractor, you are afforded certain levels of freedom that regular employees do not have. However, independent contractors do not receive the same protections and benefits as typical employees. Even if you have signed an employment contract that states you are working as an independent contractor, certain factors may be argued in a court of law to determine whether or not you are, in fact, independent.
Some of the factors that courts will consider include the following:
- The amount of control your employer exercises over your day-to-day employment, including dictating how you do your job
- The degree to which your judgment, planning, and initiative are allowed to complete your assignments successfully
- The extent to which your employers provide services or materials
- The permanency of the working relationship
How to Tell if You Have Been Misclassified?
Determining whether you are an employee who has been misclassified as an independent contractor is not always a simple matter. When you file a lost wages claim or pursue legal action by other means, you will need to establish that you are an employee despite your employer’s claims that you should be treated as an independent contractor.
If you are paid by the hour, you may be an employee. Generally, independent contractors are only paid a flat fee for a set amount of work. In addition, hourly pay must meet certain wage requirements for your locality.
Independent contractors are rarely required to stick to a fixed schedule or come into a work office. There may be some exceptions, such as the occasional meeting or two, but they are not required to go to the office with the same regularity as regular employees. If you are working a nine to five at the office, chances are you are an employee and not a contractor.
If you are required to complete employment tasks and responsibilities in a certain way, you may be considered an employee in the eyes of the law. Employers can set practices, regulations, and expectations for their employees, but they do not generally have as much control or oversight over independent contractors.
Independent contractors generally do not receive the same amount of training as employees. They are also not entrusted with company tools and resources the same way that employees might be.
Employers cannot mandate that independent contractors work exclusively for their company, except in rare cases. They often can, however, restrict their employees from working for other companies.
Why Are Non-Exempt Workers Misclassified as Exempt?
Employers may misclassify their employees as independent contractors for several reasons. In some cases, this could result from a simple mistake or misunderstanding of the rules. In other cases, it could be something far more nefarious.
Common reasons to misclassify employees include the following:
- Avoidance of legal responsibilities
- Avoiding liabilities in the workplace
- Increased flexibility
- Reduced administrative burden
- Saving money
Who is Exempt?
Only professionals, high-level administrative employees, and company executives are usually exempt from wage and hour requirements. However, this only applies if they are paid a salary. If an employee is paid a salary that is less than twice the minimum wage for your locality, that employee cannot be held exempt.
What Can You Do if You’ve Been Misclassified?
You can file an official complaint with the appropriate government agency if you have been misclassified. If you are being misclassified and also facing wrongful termination, retaliation, or workplace discrimination, then it is highly encouraged that you retain professional legal counsel from an experienced employment lawyer. Our law firm would be proud to represent your interests in pursuing the optimal outcome of your employment law case.
In the state of California, there is a statute of limitations for filing employment claims. The time window for filing a claim for breach of a written contract is four years, and the time limit for filing a wage and hour violation is three years.
No matter whether your employer intended to misclassify you or not, you must take swift action if you believe that you have been misclassified. Misclassification can result in lost wages, benefits, protections, and unfavorable tax implications.
If you have been misclassified, contact our law office to speak with the attorney today. It is illegal for employers to retaliate against workers for filing wage claims or reporting misclassifications as independent contractors. Despite that, some employers threaten retaliation, and in such cases, it is wise to have professional legal representation.
What Could You Potentially Recover in Terms of Compensation?
With a successful lawsuit, it is possible to recover the following types of compensation:
- Attorney legal fees
- For cases where an employer acted in bad faith, the plaintiff may recover liquidated damages
- Unpaid overtime pay, plus interest
- Unpaid wages for hours paid at sub-minimum wage rates, plus interest
- Unpaid wages for state-mandated meal breaks and other breaks, plus interest
Schedule a Consultation with an Experienced and Compassionate Employment Law Attorney Today
Skinner Law Corp would be proud to represent your legal rights and pursuit of the most favorable outcome for your employment law case. If you have been misclassified as an exempt worker or as an independent contractor, please contact our Ventura, California, law firm to schedule your initial consultation today. We can help you pursue legal recourse if you have been misclassified.
To learn more about our legal services, please contact us today at 310-256-0074.
