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What is worker misclassification?

On Behalf of | Nov 20, 2023 | Employment Law - Employee

Worker misclassification is a serious issue with negative impacts on workers in California and nationwide. As soon as someone notices they have been misclassified, they must address the matter.

The definition of worker misclassification

Worker misclassification is a matter of placing workers into the category of independent contractors when they should be in the category of employees. There are some things that are different in each of these categories, including the individual’s financial relationship with the company and how much control and flexibility they have when it comes to their work tasks.

How worker misclassification can be a big problem

There are numerous issues that go along with employee misclassification. There could be an impact on benefits and rights such as sick leave, minimum wage, rest breaks, unemployment benefits, and overtime pay. If you believe that your employer has made a mistake or intentionally represented your status, you can seek employment law advice and take action.

Factors that determine worker classification

There are several factors to consider when classifying a worker:

  • Employees tend to work for just one employer, while independent contractors usually work for one or more client companies.
  • Employees often are on the company’s payroll, while contractors put in an invoice to request compensation.
  • Employees usually work on a regular schedule, while contractors work around their own schedules.
  • Employees receive mandatory benefits in many countries, while contractors aren’t entitled to mandatory benefits in many places.

Worker misclassification can make your work and life more difficult. It’s best to catch your status early on and get assistance fixing this matter.