Many workers—especially in gig economy jobs—are wrongly classified as independent contractors when they should be employees. Misclassification denies you crucial benefits like overtime, minimum wage, and tax protections. Here’s how to understand and challenge it.
1. Why It Matters
Employees receive:
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Minimum wage
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Overtime pay
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Workers' compensation
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Unemployment benefits
Contractors don’t have these protections and must handle their own taxes.
2. Tests Used to Determine Status
USCIS don’t apply here—labor law uses:
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Common law agency test: control over work
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Economic realities test (FLSA): degree of financial dependence
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ABC test (some states): freedom, independent work, different business
Three-part ABC test example (California):
A) Worker is free from control
B) Work performed outside usual business
C) Engaged in their own independent business
3. Signs You’re Misclassified
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Employer sets your schedules
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Uses company tools
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Cannot subcontract
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No ability to hire assistants
4. What You Can Do
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Talk to HR or manager
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Document your work conditions
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Request official status correction
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File complaint with Department of Labor or state labor board
5. Legal Consequences
Employers found misclassifying must pay back wages, taxes, interest—and penalties.
Final Take
If your work resembles that of an employee, you might be misclassified. Recognizing the signs is the first step toward getting fair treatment and legal protections.
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