Employee Misclassification

Misclassifying a worker is when an employer incorrectly labels them as an independent contractor. Employers do this to avoid paying payroll taxes, minimum wage or overtime, or complying with other wage and hour law requirements such as providing meal periods and rest breaks. Misclassification undermines businesses who play by the rules and basic worker protections like minimum wage, paid sick days, and the safety of workplaces.

Additionally, workers are at risk if they are misclassified since they have no workers’ compensation coverage if injured on the job, no right to family leave, no unemployment insurance and no legal right to organize or join a union. This is a form of fraud.