What-California-Workers-Need-to-Know-About-Employee-Misclassification.jpg (2149×1159)When you believe you’re being cheated of benefits at work, such as not being paid properly or being denied pay for overtime, meals and rest breaks, you can easily suffer financially as well as become discouraged on your job. Sometimes, the reason for these injustices is because workers have been misclassified by their employers, meaning these workers are considered as independent contractors, rather than employees. Unfortunately, often workers don’t even realize this has occurred, or if they do, they don’t know how to resolve the problem. Here’s what you need to know about employee misclassification and how a California attorney can help you.

What Is Misclassification?

Misclassification, also known as employee misclassification, is the practice of employers not classifying their workers as employees but as independent contractors. This is done so employers can get out of having to pay unemployment benefits, besides other taxes on their workers. Employers also misclassify workers to avoid having to provide unemployment insurance and workers’ compensation.

How Employee Misclassification Hurts Workers, Honest Employers and the Economy

Employee misclassification is one of the worst issues that affect workers. In addition to workers being deprived of important entitlements, such as the minimum wage, pay for overtime and other benefits, they’re also denied medical leave and a safe workplace.

Misclassification also hurts ethical employers and companies that represent their workers correctly and play by the rules. Consider how it can take business away from them and cause them to have to pay more than their fair share.

What’s more, misclassification compromises the entire economy. It can cause financial losses to both the federal government and state governments because of reduced funds for unemployment insurance and workers’ compensation.

Exempt vs. Nonexempt Status

It’s important to know the difference between an exempt and nonexempt status. Basically, exempt employees are paid a salary that is intended for fully covering all the hours they work each week. In other words, employees are not compensated based on how many hours they work and don’t receive overtime pay.

However, nonexempt employees are generally paid by the hour. These employees receive overtime pay, according to the appropriate overtime rules.

What Determines an Independent Worker vs. an Employee?

The main test to determine whether someone is an employee or an independent contractor in California is whether or not the principal has the authority to control and direct how work is done. The IRS has developed a checklist of 20 factors, which are listed on their 4600 IRS manual. For example, the first factor, entitled “PROFIT OR LOSS”, asks if a worker is able to profit or suffer a loss from the work performed.

What California Workers Can Do

It’s critical you be aware of your rights as a worker.

Considerations and Warnings

You don’t have to continue to be mistreated and miss out on significant employee benefits and protections. If you think you’ve been misclassified by your employer, don’t hesitate to call the attorneys at Aiman-Smith & Marcy. Please contact us for a free consultation and find out more about our wide range of legal services.

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Lisseth Bayona

Attorney

Education and Background

I am a Los Angeles native and daughter of Salvadorian immigrants. From an early age, my parents instilled the value of hard work and education in me and my two siblings. Their perseverance enabled each of us to graduate from college and earn professional degrees.

My interest and commitment to workers’ rights have roots in my parents’ experiences as undocumented workers in Los Angeles. Witnessing the challenges they faced inspired me to pursue a career where I can help individuals confronted with similar struggles. To help someone in those moments is very satisfying. I love connecting with people and learning about their stories. I believe that dignity in the workplace is a right of all workers, not a convenience or privilege reserved for employees of a certain race, gender, age, sexual orientation, or gender identity.

Legal Experience

I received my J.D. from the University of Southern California (USC) Gould School of Law. While there, I served as a judicial extern to the Honorable Patrick J. Walsh of the United States District Court for the Central District of California. Also, while at Gould, I served as an extern for the United States Attorney’s Office for the Central District of California, Criminal Division. As an extern, I worked closely with a trial team of Assistant U.S. Attorneys in prosecution of a web-based platform used to promote human trafficking.

I am a member of Aiman-Smith & Marcy’s class action litigation group. As part of that team, I have successfully fought high-stakes legal battles against well-resourced and highly competent defense firms. See, e.g., Cal. Labor & Workforce Dev. Agency ex rel. Raymond v. CompuCom Sys. (E.D.Cal. Mar. 9, 2023, No. 2:21-cv-02327-KJM-KLN) 2023 U.S.Dist.LEXIS 40710.

Personal Interests

In my free time, I enjoy urban vegetable gardening, traveling, and spending time with my nephew and niece. I also love to spend time at San Onofre Beach learning to surf, although admittedly, I am not very good.

Education

 

Hallie L. Von Rock

Attorney (SBN 233152)

Education and Background

I moved to the Bay Area from Washington after graduating high school. I had been accepted to UC Berkeley through a program where I could defer for two years while getting my California residency and attending community college, which was significant since I was paying for college on my own. I began working for Randall Aiman-Smith and Reed Marcy in 1996 as an office manager while taking night classes. My first foray into the legal world was soon after starting at the firm when I was ready to transfer to UC Berkeley. Rather than accepting my resident status, the Board of Regents took the position that California residency required a student to be in California “two calendar years.” Randall and Reed took up my case with the same verve as they helped their actual clients and I got the chance to comb through the UC Berkeley library to read their codes and regulations to support my position. In that experience, I learned what is was like to feel helpless against a big organization and then to have dedicated attorneys in my corner to take up my cause.

After a break to pursue my major in art history, I went to UC Hastings College of Law and continued working with Randall and Reed. Having worked together now for over 25 years, we have a unique ability to work collaboratively and finish each other’s sentences. I have strived throughout my career to make a difference in the lives of our clients. At the end of the day, if I am helping someone to get compensation for losses they suffered, then I know that all the work put into a case has been worth it.

Legal Experience

I have extensive experience in civil litigation and class action cases, including conducting discovery and depositions, calculating damages analysis, preparing motions for certification, writing appellate documents, and overseeing claims administration. We have handled several class actions against retailers where plaintiffs claimed they were forced to purchase clothing to wear to work and were not compensated for these purchases, including against Abercrombie & Fitch, Hugo Boss, Armani Exchange, Uniqlo, Dollar Tree, and Ross. Recently, I was trial counsel in a defamation claim against Bank of America on behalf of a former employee who claimed the Bank blacklisted her with future employers. The jury found Bank of America liable, including for punitive damages.

Personal Interests

Aiman-Smith & Marcy has sponsored me in the Boston Marathon and New York Marathon. When I race, I often wear a “Rockstar Ronan” shirt to support research for childhood cancer through The Ronan Thompson Foundation.

Education

University of California, Berkeley, B.A., 1999

Hastings College of the Law, University of California, J.D., 2004

Randall Aiman-Smith

Abogado (SBN 124599)

Aiman-Smith & Marcy. Oakland consumer fraud attorneys.

Educación y antecedentes

Fui afortunado. A pesar de no haber terminado la escuela secundaria o la universidad, pude -aunque con mucho trabajo- ser admitido y sobresalir en una de las mejores escuelas de derecho del país: La Facultad de Derecho de la Universidad de Berkeley. Mientras estuve allí, tuve el privilegio de ser editor de la California Law Review y miembro del Moot Court Board, asesorando en la redacción de escritos y en la defensa de apelaciones a otros estudiantes. Después de salir de la escuela de derecho, en mis primeros años de práctica, enseñé la escritura legal y la defensa de apelación en la Universidad de California, Hastings College of the Law. También, a lo largo de los años, he sido presentador en eventos de educación legal continua.

Experiencia legal

He sido abogado durante 35 años. He dedicado mi práctica exclusivamente a representar a empleados, consumidores e inversores en los tribunales estatales y federales de primera instancia y en los tribunales de apelación. Me gusta ir a los tribunales por mis clientes y he llevado muchos casos con jurado en los tribunales estatales y federales.

¿Ejemplos? En 2010, fui la abogada principal, junto con los otros abogados del bufete, en el caso Williams v. Union Pacific Railroad donde, después de cuatro años de preparación, el bufete obtuvo un veredicto del jurado de 1.670.000 dólares para una empleada afroamericana. En Rivero v. Surdyka, fui el abogado principal en el juicio y la apelación de un caso de derechos civiles que duró 15 años, incluyendo un juicio completo y tres apelaciones al Noveno Circuito, concluyendo finalmente con una sentencia para los demandantes de más de 2.300.000 dólares. Estos casos ilustran el lema del bufete: compromiso – resultados. Hay que comprometerse con un caso, a veces durante mucho tiempo, para obtener el resultado que el cliente merece.

No siempre ganamos en el juicio. Cuando eso ocurre, el compromiso significa llevar el caso al siguiente nivel y recurrirlo. En el caso Rivero, antes mencionado, eso fue lo que ocurrió: el tribunal desestimó el caso -habíamos perdido- pero apelamos y conseguimos una victoria para nuestros clientes que mantuvimos a través de dos apelaciones más. Desde entonces, el bufete ha conseguido muchas victorias en apelación que reivindican los derechos de los empleados y los consumidores.

A lo largo de los años he sido abogado de los demandantes en numerosos casos individuales y acciones colectivas. Puede sonar cursi, o difícil de creer, pero después de todo este tiempo, y después de todas las grandes experiencias que he tenido, mi parte favorita de ser abogado es cuando consigo dar un cheque a mi cliente.

 

Educación

Facultad de Derecho, Universidad de California, Berkeley, J.D., 1986