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.

What are the consequences of treating an employee as an independent contractor?

These include the employer’s share of Social Security and Medicare taxes; overtime pay; employee benefits, including vacation, holiday, and sick pay; unemployment compensation tax; and workers compensation insurance. That said, there are severe penalties for misclassifying workers as independent contractors.

Is there a minimum wage for independent contractors?

Independent contractors are not entitled to the minimum wage because, even though they do work for a company, they are not legally considered employees of that company.

How much can I sue for misclassification?

Get Damages and Up to $25,000 Per Violation under California Misclassification Law.

What should you do if you’ve been misclassified as an independent contractor?

First, you can try to talk to your employer to see if it will review your classification and reclassify you as an employee. Explain that you think you’ve been wrongly classified as an independent contractor. At the very least, you should get an explanation as to why they think you are a contractor, instead of an employee.

What kind of tax return do independent contractors have to file?

File Your Tax Return with IRS Form 8919. Independent contractors have to pay all their Social Security and Medicare taxes themselves. In contrast, employees have half of these taxes paid by their employers.

Why do employers classify employees as independent contractors?

Employers can save a lot of money by classifying workers as independent contractors instead of employees. That’s why many of them do so, even if the workers involved should really be treated as employees under the law.

What happens if you fall under 1099 misclassification?

Independent contract work has become increasingly popular. If you are being considered an independent contractor for the work you perform, or someone you know is falling under this category, it is crucial you know your rights. You may be falling under the 1099 Misclassification category and facing serious penalties.