Employees Misclassified as Independent Contractors
California law defines an independent contractor as someone who performs a service for a specified payment and result, maintaining control over how and when the service is performed. Employers often misclassify workers to avoid providing benefits and protections required for employees under California law.
Under California law, employees are entitled to a minimum wage, overtime pay, meal and rest breaks, health benefits, and protection against discrimination. Independent contractors do not receive the same protection.
To determine if an employee is properly classified as an independent contractor, California uses the “ABC test” to determine worker classification, which presumes all workers are employees unless the employer can prove otherwise. The actual nature of the working relationship takes precedence over any signed agreements.
Misclassification can lead to substantial penalties for employers. Potential damages in a successful misclassification lawsuit may include unpaid wages and overtime (often doubled as liquidated damages), compensation for missed meal and rest breaks, retroactive benefits, attorney fees, and civil penalties if the misclassification was intentional. The specific damages available depend on the unique circumstances of each case.
If you or someone you know is misclassified as an independent contractor, contact us immediately.
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