Employee Misclassification
To avoid paying overtime and other benefits, companies in all industries have a history of misclassifying their employees. Although misclassifying staff as exempt from overtime is beneficial to the employer, it is an illegal tactic that selfishly takes advantage of their hard-working employees.
Even some of the biggest, wealthiest, and most trusted companies neglect to accurately classify their employees, even when faced with various lawsuits and multi-million-dollar settlements. These companies protect their bottom lines by misclassifying their workers because it helps cut labor costs and reduces or eliminates overtime pay while simultaneously demanding more hours out of their personnel.
If you suspect that you have been misclassified by your employer, you could be missing out on wages and other benefits. When you have questions about wage and labor laws, do not rely on a coworker or friend – ask an attorney at the Lore Law Firm who has fought for workers’ rights over the last 25 years.
What is Employee Misclassification, and How Can it Affect Your Pay?
Employee misclassification is when an employer inappropriately classifies a worker as an independent contractor instead of an employee or when it classifies an employee as exempt when they should be classified as non-exempt. Misclassifying an employee can cause them to be denied minimum wage, overtime pay, unemployment insurance, and workers’ compensation benefits. This is because, under federal law, all employers must pay non-exempt employees the state and federal hourly minimum wage as well as overtime and other benefits.
Companies often misclassify employees as independent contractors (1099 employees) because employees are covered under the federal Fair Labor Standards Act, and independent contractors usually are not. In other words, because independent contractors do not receive overtime or benefits, misclassifying an employee as an independent contractor is beneficial to an employer’s bottom line.
If you think you may have been cheated out of wages or overtime pay due to misclassification, discuss your situation with an experienced overtime pay lawyer at Lore Law Firm to explore your legal options.
Have You Been Misclassified as an Independent Contractor?
Ensuring compliance with labor laws may technically be your employer’s responsibility, but it is also within your best interest to familiarize yourself with federal and state wage laws.
Unfortunately, many employers see value in misclassifying workers because the odds are in their favor. It is not unusual for companies to go years or decades short-changing their staff before they are caught. Over this time, they will have saved a good chunk in labor costs, and because most recoveries must be made within a 2 to 3-year window, they may never have to pay out anywhere near the amount they have saved by not paying proper overtime wages.
In general, to be properly classified as an actual independent contractor, you should obtain customers on your own and not be subject to control over how you perform your services. If you have any doubts about your classification, do not hesitate to contact a workers’ rights attorney.
Even when workers are treated as employees, sometimes employers will give a worker an Assistant Manager or similar “managerial” job title that is classified as exempt from overtime. However, all too often, the duties and responsibilities of these “managers” do not involve any meaningful decision-making authority or supervision of other employees. As a result, they do not meet the requirements for exempt status and should receive overtime pay.
Are You a Misclassified Employee Who is Missing Out on Overtime Pay?
Do not allow your employer to skirt labor laws and avoid paying the minimum wage or overtime by improperly classifying you as exempt. Successful claims for misclassification often result in compensation and recovery for unpaid wages and benefits as well as a transfer of financial responsibility for the attorney’s fees and expenses onto the employer.
Attorney Michael Lore can help you hold an employer financially accountable for lost wages and benefits due to employee misclassification. Call the Lore Law Firm at (713) 782-5291 or complete our contact form to ask a workers’ rights lawyer about a possible employee classification claim today.
