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Have You Been Wrongfully Classified as an Independent Contractor?

Posted on in Employment

San Jose employee misclassification lawyers, employee misclassification,  San Jose employment law attorneys, independent contractors, misclassify employeesFor many people, the idea of working independently of an employer is appealing. They may be able to set their own hours and rates while handpicking the types of jobs they want to take. The downside is that they do not have an employer taking out taxes—they must provide for their own benefits, and generally lack the protections that regular employees enjoy.

In some cases, an employer classifies people working for them as independent contractors so that they can save money and reduce their own liability. Employee misclassification is a serious matter that has the potential to jeopardize your wellbeing and future financial security, and it is an issue our San Jose employment law attorneys can help you resolve.

Why Employers Misclassify Employees as Independent Contractors

Increasing numbers of people are working as independent contractors rather than actual employees. If this is a career choice you have made, you are likely prepared to deal with the potential conflicts and complications that can arise. The problem is when an employer misclassified workers as a way of saving money and avoiding responsibility.

According to the California Department of Industrial Relations (DIR), employers have powerful motivation for wrongfully classifying workers as independent contractors. The potential benefits for the employer include:

  • There are no payroll taxes;
  • They do not have to pay minimum wages or overtime;
  • They do not have to comply with hourly requirements concerning breaks or meal periods;
  • They do not have to reimburse workers for business expenses;
  • They do not have to provide health care or life insurance benefits;
  • They do not have to cover independent contractors for workers’ compensation, disability, or Social Security.

The Difference Between an Employee and an Independent Contractor

There are several standards used in determining whether a worker should be classified as an independent contractor or an employee, which can easily create confusion. There are three general categories the Internal Revenue Service (IRS) recommends using in making these determinations:

  • Behavioral control: How much control does the employer have over the work and the way in which it is performed?
  • Financial control: How much control or direction is involved in the financial and business aspect of the worker’s job?
  • Relationship: Are there written contracts between the worker and the employer? How integral are the duties performed by the worker to the employer’s business?

Employers who are found to have misclassified workers as independent contractors rather than employees could be subject to fines and criminal or civil penalties. They can also be subject to having to pay back taxes, benefits, and additional types of compensation to cover any losses or damages the worker suffered as a result.

Contact Us Today for Help

If you have questions about employee disputes or suspect you have been misclassified as an independent contractor on a job, reach out and contact our dedicated San Jose employment law attorneys. At Jachimowicz Law Group, we can arrange a consultation to discuss your case and any compensation you may be owed.

Source:

https://www.dir.ca.gov/dlse/faq_independentcontractor.htm

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