Misclassified Employees in California. Learn Your Legal Options.
Contract work as an independent contractor is becoming increasingly common. If you or someone you know is being classified as an independent contractor for the job you do, it is important that you understand your rights. You may be subject to severe penalties if you fall into the 1099 Misclassification category. To ensure that your rights are secured, contact an California Employment Attorney.
Power and compensation are the two factors that determine whether you are classified as an employee or an independent contractor. Throughout their workday, independent contractors incur unreimbursed costs, and they are responsible for supplying the funds to support the equipment required to perform their job. These contractors also provide their services for a flat rate to a large number of customers. Employees are unable to function under all of these circumstances.
Employers often misclassify their workers as independent contractors in order to avoid paying them correctly. Your boss prevents the following if you are working as an independent contractor:
Providing you with overtime pay
Taking care of the taxes
Providing advantages to you
Contributing to workers' compensation
Contributing to unemployment benefits
If you believe your work status has been misclassified, contact a California Employment Attorney for legal advice and to protect your rights.
In order to save money and increase their bottom line, many companies choose to recruit contractors rather than full-time workers. Companies pay independent workers to work on temporary assignments and provide consultancy services, but they are not considered staff. Since an individual company can work for a company for several years, the distinction between workers and contractors may become blurred. Many people are confused about the distinction between being an independent contractor and being an employee because there seems to be little difference in many situations. Employees and independent contractors often work for the same company and, in some cases, perform the same tasks.
The misclassifying staff as independent contractors when they should be employees is one of the most common mistakes employers make. Although some employers can honestly misclassify employees due to a lack of legal knowledge, others do so on purpose to escape legal responsibilities. When keeping the services of independent contractors, companies have a lot more grey areas to work with. They still have some leeway when it comes to matters of job taxes in some situations. Independent contractors and self-employed persons, on the other hand, should study their relationships carefully and bear in mind the special legal and tax issues in order to appreciate the differences.