Employment misclassification is an issue that can be significantly worse than it sounds, even when it is entirely unintentional. This is due to the legal and financial burden it can place on employers and employees alike when it happens. But what exactly is employment misclassification, and why should you worry about it happening in your business?
What is Employment Misclassification?
Employment misclassification is when an employee is improperly classified as an independent contractor, or vice versa. This is important because employees and independent contractors are considered legally distinct types of workers, and have entirely different levels of legal protections and responsibilities. Employers also have different types of legal obligations to employees versus independent contractors, which can lead to potential issues if they are misclassified.
How Does Employment Misclassification Happen?
Often, misclassification happens by mistake, with an employer accidentally classifying one type of worker as another and moving forward under that mistaken assumption. This can occur due to the somewhat vague legal standards that separate the two types of workers, which are not always clear when put into practice. Other times, employment misclassification is the result of a deliberate act on the part of the employer, choosing to misclassify an employee for legal or financial reasons.
What Are the Effects of Employment Misclassification?
When a worker is misclassified, accidentally or intentionally, it can lead to some potentially serious legal problems. Workers may be stuck without legal protections they would normally be entitled to, or may be forced to pay Social Security taxes that would normally be covered by the employer. Employers, meanwhile, may face fines, fees, and potential litigation from aggrieved workers seeking compensation for harm they have suffered.
What Should You Do?
If you are a worker who has been misclassified by your employer, or an employer facing accusations of misclassification, you should speak to a lawyer with experience handling employment law issues. They can help review your situation and determine how best to move forward with your case. The sooner you call, the sooner they can get to work for you.
