Companies Frequently Misclassify Employees
Many employers try to save money by improperly labeling employees they hire as independent contractors. Being improperly designated as an independent contractor can have serious negative consequences.
Independent contractors are not eligible to receive employee benefits such as health insurance, paid vacation, holiday and sick leave, 401(k) plans, pension plans, state disability insurance, unemployment insurance, and many other employee benefits. Additionally, independent contractors may not be protected from discrimination, harassment, or retaliation by the companies for whom they work. As a result, it is important to know whether you are really an employee, even though your employer is calling you an independent contractor or consultant.
Misclassification of employees has become such a serious concern that the United States government is vigorously enforcing laws addressing the issue. But the federal government cannot prevent all employee misclassifications. If your company has mislabeled you as an independent contractor, then contact The Nirenberg Law Firm.
Am I an Employee or an Independent Contractor?
It can often be confusing to determine whether you are an employee or an independent contractor, especially since companies misclassify their workers so frequently. The three most important factors to determine whether you are an employee, rather than an independent contractor, are:
- How much control the company has over your work;
- How economically dependent you are on your job; and
- The extent to which your job is integrated into the company's business.
Other relevant factors include your level of skill, whether you or the company provide your tools, equipment and workplace, how long you have worked for the company, and whether the company pays you like an employee or like an independent contractor.
To help determine if you are an employee who has been misclassified as an independent contractor, you should contact us online, or call us at 201 487-2700.