Employees Misclassified as Independent Contractors

Bergen County Employment Lawyer Help for Worker Misclassification in New Jersey

Many New Jersey workers get hired to perform work as an employee, but the company labels them as an “independent contractor,” “consultant,” or “1099 worker.” Sometimes the label comes with a contract. Sometimes it is just how the company handles the payments. Either way, the company’s label and treatment of the worker is not necessarily the law. If the company controls how you perform the work, relies on you as part of its day-to-day operations, or treats you like staff, then it may have misclassified you.

Misclassification can cost you money, benefits, and legal protections. It also can make you feel stuck, especially if you rely on your income and worry about retaliation. If you suspect you were misclassified, speaking with a Bergen County employment lawyer can help you understand whether you have a claim and what steps make sense for your situation.

What Misclassification Means in the Real World

Misclassification happens when a company treats you like an employee but pays you like a contractor. You may work a set schedule, report to a supervisor, use company systems, and follow company rules, yet you receive a 1099 instead of a W-2 and be told you are “not an employee.”

This issue is common in industries where businesses try to keep labor costs down or avoid administrative obligations, including construction, delivery and logistics, home health, sales, beauty services, media, education-related services, and many professional services.

Why Being Labeled a Contractor Can Hurt You

Being classified as an independent contractor can have serious consequences, especially when the classification is wrong. Depending on your job and the benefits your company offers employees, misclassification may affect:

• Access to benefits such as health insurance, retirement plans, paid time off, and other employee benefits
• Eligibility for unemployment benefits if your work ends or your hours are cut
• Coverage for workers’ compensation, short term disability and other protections tied to employee status
• Minimum wage and overtime rights
• How payroll taxes are handled, including unexpected tax burdens and missing employer contributions
• Your leverage when you push back on unfair treatment, especially if the company acts as though your rights are limited because you supposedly are not an employee

It is important to note that, even when a worker truly is an independent contractor, some legal protections can still apply. Regardless, the key point is that the correct classification matters because it often determines which rights and remedies are available to you, and how you can enforce them.

Misclassification Can Affect Discrimination and Retaliation Claims

Companies sometimes claim that anti-discrimination and whistleblower protections do not apply because a worker is “only a contractor.” In many situations, however, that is not the end of the analysis. New Jersey law can protect workers based on the realities of the relationship, not the label or title a company uses.

If you experienced harassment, discrimination, or retaliation and the company you work for tries to hide behind labeling you an independent contractor, it still can be worth having a lawyer review the facts. A misclassification issue can become a major part of proving your rights and your damages.

Signs You May Be an Employee

No single factor decides every case, and different New Jersey laws apply different tests. Still, misclassification often shows up in predictable ways. For example, you actually may be an employee if the company:

• Controls your schedule, location, or how you perform the work
• Trains you like staff
• Requires you to follow internal rules and policies
• Provides the tools, equipment, or systems you must use
• Requires you to ask permission for time off or to deviate from assigned tasks
• Pays you in a regular cycle that resembles payroll rather than per-project invoicing
• Limits your ability to work anywhere else, or expects exclusivity
• Integrates your work into its core business operations, so you function like part of the team rather than an outside vendor

How New Jersey Law Determines Whether You Are an Employee

Workers often assume there is one universal definition of “employee.” In reality, different statutes use different standards.

For example, for wage-and-hour issues, New Jersey law focuses on whether the company can show you truly are in business for yourself and free from the company’s control. For discrimination and retaliation issues, the analysis often centers on the nature of the working relationship, including control, economic dependence, and how integrated your role is within the company’s operations.

Independent Sales Representatives and Commission Rights in New Jersey

Being an independent contractor is not always a bad thing, especially when the relationship is legitimate and the contract terms are fair.

New Jersey also has specific protections for certain commissioned independent sales representatives. If you are an independent sales representative paid by commission and the company fails to pay you the commissions you earned at the end of the relationship, New Jersey law may provide strong remedies. In some cases, the law can allow recovery of the unpaid commissions plus treble (triple) damages, which can significantly increase the value of a claim.

What You Can Do if You Suspect You Were Misclassified

Misclassification claims often turn on small details matter, including who set your schedule, how you were supervised, how you were paid, and what the company required you to do.
If you think your classification is wrong, consider:

• Saving written communications about schedules, expectations, performance criticism, and directives
• Keeping your own time records, even if the company does not track your hours
• Preserving contracts, onboarding materials, policies, and any written job expectations
• Documenting benefits you were denied or expenses you were required to cover
• Getting legal advice before signing a new agreement, resignation letter, or separation paperwork

You do not need to figure this out alone. A focused review of the facts often can clarify whether the label the company has given to you fits the law.

Talk With a Bergen County Employment Lawyer About Independent Contractor Misclassification

If your company classified you as an independent contractor even though you were functioning as an employee, you may have claims for unpaid wages, overtime, denied benefits, or retaliation, depending on the situation. Rabner Baumgart Ben-Asher & Nirenberg, P.C. represents New Jersey workers in misclassification disputes and related wage and hour and workplace rights matters.

To discuss your situation with a Bergen County employment lawyer, please call Rabner Baumgart Ben-Asher & Nirenberg, P.C. at (201) 777-2250 or contact us online to schedule a consultation.