Did you know misclassification can lead to improper pay, lost benefits, tax implications, and unpaid overtime hours worked?
But do you know what misclassification is?
Employee misclassification is the practice of labeling workers as independent contractors when they are actually employees. This allows employers to avoid paying unemployment benefits and other taxes to workers, and cover them with workers’ compensation and unemployment insurance.
The practice lowers labor costs for the employer but creates an uneven playing field when companies bid on projects competitively. Also known as “underground economy,” misclassification also has negative consequences for state and federal governments, which are being robbed millions in tax revenue. Misclassified workers abeled as independent contractors work without the legal protections normally provided to employees (wage and hour laws, workers’ compensation, Social Security and Medicare from the employee’s wages, and unemployment benefits.) If a worker is considered an independent contractor, the worker is responsible for paying their own income and self-employment taxes, which can result in underpayment of taxes if a worker does not understand or comply with these obligations.
These types of cases can seem a bit complex, especially if you are not familiar with the labor laws of the United States. Our team is an expert in the law to defend employees and suppliers from these types of wrongful actions. We will defend you as you deserve, we faithfully believe that each person has the right to work in a healthy, safe and fair work environment.