Employee misclassification is a surprisingly common problem that employees face in every industry and at every income level. When it happens, it can cost employees a significant amount of money and place them in otherwise avoidable legal peril. But what exactly is employee misclassification, and why might it happen to you?
What is Employee Misclassification?
In simple terms, employee misclassification is when an employer falsely identifies an employee as an independent contractor, or vice versa. This is important because employees have a number of job protections that independent contractors do not, and employers are able to exercise a higher level of authority over employees than they can independent contractors. Likewise, employers are legally responsible for actions undertaken by their employees while on the job, but typically have no responsibility for independent contractors.
Why Does Employee Misclassification Happen?
In some cases, employers will misclassify employees by mistake, a result of either misunderstanding the law or making some kind of paperwork error. In other cases, however, employee misclassification is a deliberate act intended to diminish the legal and financial responsibilities the employer has for their worker. By misclassifying an employee as an independent contractor, for example, an employer can avoid expenses like workers’ compensation or health insurance, and they do not need to pay Social Security taxes for that employee.
What Are the Consequences of Employee Misclassification?
The results of employee misclassification can be potentially devastating. For example, if an employer misclassified an employee as an independent contractor, that employee could be hit with an unforeseen tax bill for unpaid Social Security taxes. They may also be deprived of important benefits that might otherwise be required by law or by company policy, such as paid sick or vacation leave.
What Should You Do if it Happens to You?
If you have been the victim of employee misclassification, you should speak to a lawyer with experience handling employment law issues. They can review your case and help you explore all of your legal options. The sooner you call, the sooner they can get to work to get you the compensation you rightly deserve.
Steven Mitchell Sack, the Employee’s Lawyer, is a New York employment lawyer with more than 44 years’ experience handling the many aspects of employment law. His new book, “Fired!: Protect Your Rights & FIGHT BACK If You’re Terminated, Laid Off, Downsized, Restructured, Forced to Resign or Quit,” is available in hardback, and contains valuable advice on dealing with employment and labor law issues. To purchase the book, feel free to contact Steven Sack at 917-371-8000 or visit the website at legalstratpub.com. To inquire about a legal matter, please feel free to contact attorney Steven Sack at 917-371-8000 or stevensackatty@hotmail.com.
