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Independent Contractors

Do you work as an independent contractor?

While independent contractors have become increasingly common in today’s workforce, some employers try to circumvent the system and misclassify their full-time employees as these types of workers. Doing so gives the business advantages while workers are at a disadvantage. Employee misclassification is also illegal. Here is what you need to know.

Explaining Employee Misclassification

Employee misclassification involves labeling workers as independent contractors instead of employees and can affect those who should be classified as hourly or salaried employees.

While your employer is responsible for hiring workers under the correct employee law classification, you have a right to question your status. Never take your employer’s word at face value, as many factors determine your correct classification.

How Misclassification Takes Advantage of Employees

Employee misclassification is sometimes called the underground economy because of the many legalities it sidesteps. Workers suffer the most significant consequences because they do not have the legal protections commonly afforded to employees, like wage and hour laws, overtime pay, workers’ compensation, and unemployment benefits.

If you experience  misclassification, you lose workplace protections like the right to join a union. Your employer may also misclassify your position to circumvent Equal Employment Opportunity Commission (EEOC) rules that protect your civil rights, including discrimination based on age, race, gender, disability, etc.

You also face a higher tax burden as your employer doesn’t have to pay Social Security and unemployment taxes. Neither will you be able to enroll in employer-sponsored healthcare and benefits plans. All of this means more money out of your pocket.

What is an Independent Contractor?

An independent contractor provides goods or services to a business under the terms of a contract. As a contractor, you retain control over how you provide your services to a company. Essentially, you are self-employed and treat the business you give work to as a client. Your earnings are subject to the federal self-employment tax.

The line between independent contractors and employees is often blurred. The Fair Labor and Standards Act (FLSA) uses several standards to determine if individuals are legally independent contractors. Test parameters include how much independence you have and your specific workplace situation, among other factors. The most defining factor determining employee  classification is that the business you work for retains legal control over how you perform your services.

Common Overtime Problems That Can Become Legal Issues

Most misclassification problems involve overtime pay or a related variation. The following situations are common:

  •  A daily pay rate with no additional overtime past 40 hours in a week
  • Overtime allowed but at the straight-time rate
  • A set salary, yet you are not a manager and must work overtime
  • You are required to go “off the clock” before your scheduled time or must take work home
  • Denial of overtime pay requests
  • Bonuses instead of overtime pay
  • Bonuses and shift differential are not part of overtime pay
  • Comp time given instead of overtime

How Edel Cuadra can Help

As a seasoned employment lawyer in Dallas, Edel Cuadra is thoroughly familiar with Texas companies’ tactics to misclassify employees. Often, workers listed as contractors are afraid to press their case to obtain the proper classification.

Employee law is on your side. Edel Cuadra will evaluate your workplace situation and apply FLSA standards to determine whether you should receive benefits due to company employees. If your employer refuses to give credence to your claims, you may have the right to file a lawsuit for overtime pay and other benefits.

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Prevent Employee Misclassification! Contact Cuadra Law Today

Contact Cuadra Law today if you believe you have been incorrectly classified in your current position or need help with commissions and benefits. Don't wait any longer for the money you deserve. Let Edel Cuadra use his experience to help you reap the benefits.

Schedule your free consultation today!