Employers increasingly rely on temporary and “gig” workers to make their businesses run. Although many workers are grateful to pick up a few hours each week in one of these jobs, there are many disadvantages to being an independent contractor. Employers also have strong incentives to misclassify employees as independent contractors, which harms everyone.
At Sattiraju & Tharney, LLP, we represent workers who should properly be classified as employees. Contact us today if you have a question about your classification, because you might be entitled to compensation.
Are You an Independent Contractor or an Employee?
New Jersey is a leader in the nation at trying to root out employee misclassification. Our State has adopted a legal analysis called the ABC test for determining who is an actual employee. Under this test, a worker should be classified as an employee unless the employer satisfies all three of the following prongs:
- A worker is an independent contractor only if they are free from an employer’s direction and control with respect to how they perform work. This independence must be true in fact as well as under the terms of the contract.
- A worker is an independent contractor only if the work they do is outside the employer’s regular course of business or away from the employer’s place of business.
- A worker is an independent contractor only if they have an independent profession, occupation, trade, or business.
As mentioned above, all three must be true. For example, a plumber might have his own independent business, and he does work for many different clients. He comes to the workplace on his own schedule and performs work independently. This plumber is an independent contractor.
However, if the plumber worked primarily for one property management company, and the company sets his hours, then he is most likely an employee.
Have You Been Denied the Benefits of Employment?
Employees have many rights and protections that are denied independent contractors. For example, most employees are guaranteed a minimum wage and overtime pay for hours worked above 40 in a week. Independent contractors have none of these rights. They are paid whatever they agree to receive under their contract.
If an independent contractor is injured on the job, they might not receive workers’ compensation benefits no matter how injured they are. Laid off workers do not receive unemployment benefits unless they are classified as employees.
Misclassification costs workers millions a year. Some industries are more prone to misclassification than others, but all workers could potentially be misclassified. Meanwhile, employers reap unfair gains that they are not entitled to.
We Can Fight Misclassification in Morristown, New Jersey
The lawyers at Sattiraju & Tharney, LLP understand how misclassification harms the local and regional economy, and we are powerful voices for workers. If you think you have been misclassified, please contact our firm today to schedule a confidential meeting.