Employee Misclassification

While employees and independent contractors may seem similar, these classifications each have different rights and
protections. Often, employers will classify people who should be employees as contractors to avoid paying overtime and deny other benefits. A skilled employment lawyer can help you get compensation if your employer misclassified you as an independent contractor. The proven counsel at JLG Lawyers helps workers across California get back pay and compensation for their misclassification.

For more information on employee misclassification, check out our blog post for the state of California.

What legal rights do independent contractors have?

The rights of true independent contractors are governed by the terms of the independent contractor agreement
they sign. However, many people classified as independent contractors are actually employees under
California law. In such cases, although labeled an independent contractor, the worker has the same rights as
other employees. That includes the right to overtime pay, reimbursement of business expenses, and the right
to claim unemployment insurance.

Can you sue a 1099 employer?

The fact that a company reports your pay on an IRS 1099 Form does not mean that you are a bona fide independent contractor. You may still be entitled to recover unpaid wages, overtime, meal and rest break premium wages, and expense reimbursements.

Can an employer fire an independent contractor?

The right to terminate the contract of a true independent contractor is governed by the terms of the
independent contractor agreement. Typically, the agreement will give the independent contractor the right to
notice before termination occurs. Often, the agreement is only for a short period of time or until a task is
completed. An ongoing relationship without end is more like an employment relationship and less like an
independent contractor relationship.

What if I am misclassified as an independent contractor?

A worker misclassified as an independent contractor can sue to enforce her rights under California
employment laws. That includes the right to sue to recover unpaid overtime and minimum wages, meal and
rest break premium payments, business expenses, as well as the right to seek unemployment insurance
payments.

Can you sue for employee misclassification?

Yes, a worker misclassified as an independent contractor can sue to enforce her rights under California
employment laws. That includes the right to sue to recover unpaid overtime and minimum wages, meal and
rest break premium payments, and business expenses. A misclassified worker can also seek to recover
statutory and civil penalties for the misclassification.

Can a 1099 employee sue for wrongful termination?

The fact that a company reports your pay on an IRS 1099 Form does not mean that you are not an employee.
If you are fired for complaining about unlawful conduct, you can bring a wrongful termination claim. The
company’s label does not matter; the Court will decide whether you are an independent contractor or
employee.

Can an independent contractor sue for retaliation?

Yes, under certain circumstances, an independent contractor may sue for retaliation. For example, many
whistleblower laws protect independent contractors as well as employees. Further, the fact that a company
calls you an independent contractor does not mean that you are not an employee. If you are punished for
complaining about unlawful conduct, you can bring a retaliation claim. The company’s label does not matter;
the Court will decide whether you are an independent contractor or employee.

What should I do if my employer has been wrongly classifying me as an independent contractor to avoid California wage and hour laws?

If you believe you have been unlawfully classified as an independent contractor, you should schedule a call
with one of our labor and employment experts and find out how we can help. Strict time limits called statutes of
limitation may control how long you have to bring a claim.