If you are treated as an independent contractor but perform work like a regular employee, you may be missing out on important rights. Job misclassification can affect more than just your tax paperwork. It can prevent you from receiving key benefits and protections that employees are entitled to under employment law.
Many workers are unaware that misclassification can have serious financial and legal consequences. Whether intentional or not, the classification error can limit access to income, safety nets and legal safeguards in the workplace.
1. Minimum wage and overtime pay
Employees are entitled to earn at least the minimum wage and may qualify for overtime pay. If you are misclassified, you might be paid a flat rate without proper compensation for extra hours worked. This can result in significant lost income over time.
2. Family and medical leave
Job-protected leave under federal and state laws is available only to employees. If you experience a serious health condition, the birth of a child or need to care for a family member, misclassification can prevent you from taking the leave you need without risking your job.
3. Workplace protections
Many laws that prohibit discrimination and retaliation apply only to employees. Being misclassified could limit your ability to report unsafe conditions, harassment or wage violations without fear of losing your work opportunities.
4. Workers’ compensation and unemployment insurance
Employees who are injured on the job or lose their jobs through no fault of their own may receive benefits like medical care or unemployment pay. Independent contractors are typically not covered, which can leave you without support during difficult times.
5. Employer-paid taxes
When you are classified as an employee, your employer pays part of your Social Security and Medicare taxes. Misclassification shifts this burden onto you, reducing your take-home pay and affecting your long-term benefits.
Employment law offers protections designed to promote fairness and security. If you suspect that job misclassification is affecting your rights or benefits, seeking legal guidance can help you understand your options.