Posted by Terry Bryant on 06/27/2018

Are You an Independent Contractor in Name Only?

Across the United States, worker misclassification is a serious problem – and while it can occur in any industry, it is perhaps most common in the fields of food service, transportation, and construction. Specifically, worker misclassification refers to a situation where an employer wrongly classifies a worker as an independent contractor when he or she should be considered an employee. This is an especially common issue affecting immigrant workers, but it is certainly not unique to the immigrant labor force.

Understanding the Problem of Worker Misclassification

There are many reasons why worker misclassification can be detrimental to workers. For starters, when a worker is misclassified as an independent contractor, this often means that he or she is denied many rights and protections that a "traditional" W-2 employee would have. This can include anything from workers' compensation coverage to the ability to collect overtime pay. Independent contractors are also usually not entitled to certain benefits that employees are, such as paid time off, insurance coverage, and participation in retirement plans.

Sometimes, employers unintentionally misclassify workers as independent contractors because they simply don't know any better. Unfortunately, there are many more situations where an employer will intentionally classify a worker as an independent contractor in order to get out of paying certain types of taxes (such as payroll taxes) and offering benefits to workers. Meanwhile, these same employers count on workers' not knowing their rights and legal protections in order to continue getting away with misclassification.

What This Means if You're Injured On the Job

If you're injured on the job as an independent contractor, it's important for you to understand your rights and legal protections. For starters, consider whether or not you could be a victim of worker misclassification. According to the Fair Labor Standards Act, you are not necessarily an independent contractor just because you signed an independent contractor agreement or receive a 1099 instead of a W-2. Even if you work remotely or have flexible work hours, this doesn't necessarily mean you should be classified as an independent contractor.

The standards used to determine whether or not a worker should be classified as an employee can be confusing, which is why having an attorney review your case is always recommended. In general, however, it must be proven that a significant employer-employee relationship exists. Some of the factors that will need to be taken into consideration here include:

  • the alleged contractor's involvement in business operations
  • the permanency of the relationship between employer and alleged contractor
  • the alleged contractor's services provided.

What Are Your Legal Options as an Independent Contractor?

If it turns out that you are misclassified as an independent contractor and have been injured on the job, you have options. You may need to prove that you have been misclassified by the employer. You also may have a legal claim which could compensate you for your lost wages, pain and suffering, and other damages.

The best thing you can do if you've been injured at work and believe you may be misclassified as an independent contractor is to seek legal guidance from an experienced attorney who has handled similar cases in the past. He or she will be able to determine whether you have, in fact, been misclassified and what legal remedies are available to you as a result. From there, he or she can begin the legal process of filing a claim while keeping you informed throughout every step of the process.

 Unfortunately, worker misclassification is a very real problem across the United States – and one that often robs hard-working people of their rights. If you've been injured on the job as an independent contractor, it's always worth checking with an experienced legal team to see whether you are the victim of misclassification – and this is limiting your rights to recover from an on-the-job injury.

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