Our employment lawyers have fought for workers who were “misclassified” under state and federal law. Worker misclassification generally occurs in two ways: (1) a company classifies an employee as exempt from overtime in order to work him or her extra hours for less pay—or (2) a company classifies a worker as an independent contractor and denies them overtime and other benefits. In either circumstance, worker misclassification is a serious problem that can deny an employee thousands of dollars in pay and benefits each year. Workers that are often misclassified include salespersons, assistant managers, account representatives, interns and technical support professionals. We’ve successfully represented employees who were misclassified and obtained unpaid wages and other damages on their behalf.
Exempt vs. Non-Exempt Worker Misclassification
The first main type of worker misclassification is when a company determines an employee should be “exempt” from overtime requirements under state and federal law. This way employers can squeeze as much work out of its employees as it can without having to pay high overtime rates. However, only certain workers qualify as exempt from overtime, and they must meet all of the legal requirements under very specific exemptions, such as those the law creates for executives, administrators, and “outside” sales persons. Typical jobs that are exempt from overtime include high-level executives, directors or managers that oversee large teams of people, physicians and attorneys. Workers with intermediate levels of seniority, like assistant managers, team leads, some salespersons, interns, and administrative staff who do not manage other employees are commonly misclassified.
Independent Contractor Misclassification
Another way employers misclassify workers is to call them “independent contractors” instead of employees. Companies do this because it saves them money from having to pay the workers overtime or share in employee benefit plans like vacation time and 401(k) plans. Companies misclassify to also avoid having to pay the employer’s share of payroll taxes, and contributions to social security, disability, and other worker’s benefits. When workers are misclassified as “independent contractors” they are also illegally denied rights to obtain unemployment and other benefits when their working relationship with the company is terminated. While there are situations where independent contractors are not employees, many recent lawsuits have claimed workers, particularly those involved in the sharing economy with companies like Uber and Lyft are misclassified. Workers that are misclassified as independent contractors can recover unpaid wages, overtime, and other damages.
Our Worker Misclassification Lawyers
Our employment lawyers have extensive knowledge and experience enforcing workers’ rights when they have been misclassified. Our team has a strong track record of representing employees in class action lawsuits against restaurants, retail stores, tech companies, manufacturers and the government when they have violated workers’ rights. Our dedication to protecting employees’ rights has recovered tens of millions of dollars in class action cases that held employers accountable for their unlawful conduct and ensured better working conditions in the future.
What should I do if I think I’ve been misclassified?
If you believe you have been misclassified, please fill out the form below or call 1-844-333-7660 for a free and confidential consultation.
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