Misclassification of Employees as Independent Contractors


Independent Contractor Law in San Jose, CA

Learn More About Employee Misclassification

Both employers and prospective employees should always be wary of misclassification as independent contractors. While many companies hire independent contractors within the bounds of the law, others stretch the rules and leave their employees at a disadvantage and themselves at great risk. Fortunately, the Advocacy Center for Employment Law is here to help guide parties to correctly assess whether a worker may be validly classified as an independent contractor. We work with clients throughout San Jose, CA and the surrounding communities. Our team is ready to evaluate your situation and best advise you how to proceed.

What Is Independent Contractor Misclassification?

Many businesses choose to hire independent contractors rather than full-time employees to take care of daily tasks. However, should companies decide to do this, they must carefully consider recent changes in the law. Under recent California Supreme Court decisions and legislation, a worker will be deemed to be an employee unless the employer proves the following:

  • (A) That the worker is free from the control and direction of the hiring entity in connection with the performance of the work; And (B) that the worker performs work that is outside of the usual course of the hiring entity’s business; And (C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

Examples of Essential Work For An Employer

Most employees doing essential work for a business are not considered independent contractors. For example, roofers at a roofing company or computer technicians at an IT firm are performing the primary services the company advertises. If the worker is classified as an independent contractor, yet is doing this type of essential work for the business, this would suggest an instance of misclassification. Be sure to speak with our team about the specifics of your case.

Why You Should Seek a Legal Opinion

If you believe there may be a misclassification. There may be severe penalties and shortage of benefits and wages and other considerations should misclassification occur. These may affect the following:

  • Overtime Pay
  • Availability of rest and meal period breaks
  • Accrual of mandatory state sick leave
  • Workers’ compensation
  • Medical, dental, and vision insurance
  • Paid time off
  • Disability benefits
  • Paid holidays
  • Family leave
  • Minimum wage protection

Consequences of Independent Contractor Misclassification

Companies that have misclassified their employees may be given a range of consequences and penalties. These independent contractor misclassification penalties may mean repaid wages or additional compensation for you. If your employer is found guilty, they may be deemed responsible for the following:

  • Repaying employment taxes and worker’s compensation premiums
  • Legal fees
  • Employee compensation for overtime and minimum wage violations
  • Compensation for missed breaks

Get in Touch with Us to Learn More

Don’t wait to seek experienced legal representation! Our lawyers are ready to examine your circumstances and fully evaluate all aspects going forward. We’ll make sure you understand all courses of action and help you decide on the best method of resolving your particular issue. The Advocacy Center for Employment Law is nationally acknowledged for its high caliber representation and favorable results. As a trustworthy law firm, and we want to work with you. Contact us today for more information on misclassification or our other practice areas.