When an employee is misclassified as an independent contractor, they miss out on an array of benefits and protections that are extended to employees under state and federal labor laws. Yet both intentionally and unintentionally, employers misclassify employees all of the time. For employees who have been misclassified, taking action is important. At the office of the Sattiraju Law Firm, our Perth Amboy misclassified employee lawyers can help. Please call our New Jersey employment law attorney today to learn more.
The Consequences of Misclassification
When an employee is misclassified, they can be denied the same protections that are required for employees under the law. Such protections include:
- The right to earn the minimum wage;
- Overtime and hour protections;
- Family and medical leave benefits;
- Unemployment insurance;
- Workers’ compensation; and
- Discrimination protections.
In addition, when an employee is misclassified, the employer escapes the burden of having to pay unemployment tax and other taxes, which not only results in the loss of revenue to the government, but also places a higher tax burden on the contractor.
How to Know If You’re an Employee or a Contractor
Whether or not you are an employee or a contractor depends on the nature of your work and the relationship you maintain with your employer. There are three components that the IRS usually looks at when considering contractor vs. employee status: behavioral control, financial control, and relationship. Elements of an employer-employee relationship generally include:
- The employer makes decisions about the work that is performed by the worker, including when the work happens, how the work happens, the training provided to the worker, etc.
- The employer makes decisions about payment for the work performed as well as the method and frequency of payment, such as a paycheck every two weeks.
- Elements of an employee-employer contract exist, such as a signed contract, benefits, or an expectation that the relationship will continue indefinitely.
Take Action Now
If you have been misclassified, you may have to pay all of your Social Security taxes out of your own pocket, may be ineligible for certain benefits, may have few workplace rights, and more. If you believe that you have been misclassified, you should take action immediately by talking to your employer, getting the IRS involved, or hiring an experienced attorney who can guide you through your options and your rights.
Help For Misclassified Employees in Perth Amboy
At the law office of the Sattiraju Law Firm, we have years of experience working on misclassified employment cases, including many cases involving truck drivers who are misclassified as contractors when they are really employees. The misclassification of employees is illegal and unethical, and employers should be held responsible for this. If you believe you have been misclassified, we urge you to take action. Our lawyers can help you to acquire the proper classification you deserve, seek remedy for any damages you have suffered as a result of the misclassification, and get the protections you need under the law. To learn more, please call our office directly or send us a message telling us more about your case.