Carlsbad Employee Misclassification Lawyer

Carlsbad Employee Misclassification Attorney

The right to work is a guarantee of the law in California, whether you are salaried or hourly. Unfortunately for many Carlsbad employees, particularly those in low-paying jobs, employers seek to save money on compensation by misclassifying their employees as independent contractors when the work they are asked to complete and the treatment they receive directly imply they are employees. A Carlsbad employee misclassification lawyer can help you get the compensation you deserve.

At Clapp Legal APC, our employment attorneys recognize the significant loss a misclassified employee could suffer as a result of this employer trick. Our attorneys have helped thousands of clients who faced misclassification and other employment law violations recover damages they are owed because of employers who are looking to save a few dollars.

 

The Significance of Misclassification

When an employer misclassifies an employee, they deny them specific rights and protections provided by California and federal laws. As a worker, if you are labeled as an employee of a company, you have the right to claim specific benefits. When you are misclassified, you could miss out on any of the following:

• Insurance for unemployment, disability, paid family leave, and workers’ compensation. While some of these programs may be available to independent contractors, if you are classified as such, you may be required to pay into a state-run program.
• Protection against minimum wage violations and overtime restrictions. As independent contractors, employers are not required to pay a minimum wage; therefore, the state and federal regulations do not apply. The same is true for earning overtime, where independent contractors are not required to be paid for it.
• Meal and rest breaks. California law requires that hourly employees be provided with mandatory meal and rest breaks during shifts of certain lengths.
• The right to regular paycheck intervals and pay stub information. Independent contractors are responsible for billing and tracking their own payroll information. This also includes ensuring taxes are paid.

These are just some of the benefits that employees receive that independent contractors do not. In addition to these, independent contractors will likely have to pay a self-employed tax that could be upwards of 7.5% of their pay.

How to Tell if You Are Misclassified

It may not be obvious if your employer is misclassifying your employment. However, if you have suspicions, there are some signs to look for. These include:

• Tax forms. Every year, regardless of your classification, your employer must provide you with tax forms that you use to help with yearly filings. If you are provided a W-2, you are classified as an employee. If you are provided a 1099 or 1099-MISC, you are likely classified as an independent contractor.
• Hiring forms. You should always pay attention to the documents you are provided during onboarding after you are hired, but specifically, ensure you look at the initial tax documents. If you are provided an I-9 or W-4, you are classified as an employee. If you are asked to fill out a W-9, you are an independent contractor.
• Employment contract. Look through any contractual agreement you have with your employer that describes your role, your duties, and how you are classified.
• If you are classified as a regular employee, you will have regular deductions for taxes and benefits removed from your pay stub. These include Social Security taxes, Medicare taxes, and payroll and state disability taxes. If your paycheck does have any tax withholdings, your employer is likely classifying you as an independent contractor.

What Should You Do if You Are Misclassified?

If you feel you are misclassified, the first step is to determine how you should be classified. To be classified as an independent contractor, you must perform your work independently of your employer and without their control, you must engage in business that is outside the realm of your employer’s regular duties, or you must also engage independently with others in the same trade, occupation, or business as the work you are performing.

If those do not apply to you, then you should be classified as an employee with all the benefits thereof. If you suspect you have been misclassified, you should then reach out to your employer or HR department for further clarification. If that does not resolve the issue, then you should speak with an employment attorney who can help provide you with the options available.

Misclassification Lawyer FAQs

Q: How Much Can You Sue an Employer for Misclassification in California?

A: While the circumstances and potential damages will vary by case, employers are subject to fines between $5,000 and $15,000 per violation. This penalty can increase to $25,000 if the circumstances warrant it. The employee may also be eligible to receive compensation for taxes, lost wages, and other benefits they were denied.

Q: What Is the Statute of Limitations for Misclassification in California?

A: Any employee who discovers they have been misclassified has three years to file a complaint. That time begins at the discovery of the violation. Generally, that date is the most recent date of employment with that employer. As soon as you suspect misclassification, you should speak with an attorney to help ensure you meet timely deadlines.

Q: What Are the 4 Factors Used to Determine Whether Someone Is an Independent Contractor?

A: A person is classified as an independent contractor if they control their own performance of work, is compensated based on the quality of the work and not the time to complete, is engaged in an independently operated business, or the classification is not used as a way to avoid the worker’s status as an employee.

Q: How Do I Report the Misclassification of Employees in California?

A: The first step in any misclassification claim is to seek the help of an experienced employment law attorney. They will help guide you through the process. You should then report the concern to your employer in an attempt to correct the situation. If they refuse to do so or fail to, you should work with your attorney to file a complaint with the Bureau of Field Enforcement.

Carlsbad Employment Misclassification Attorney

When you are misclassified at work, you lose out on important benefits that you would otherwise be provided. While your employer is attempting to save money, you are suffering the consequences. At Clapp Legal APC, our employment attorneys are experienced and ready to fight for your rights and ensure you are compensated appropriately for the work you provide. Contact us today for a consultation.