Cleveland, TN Employee Misclassification Lawyer
Employee misclassification takes millions of dollars from federal and state governments each year. It also takes money from hard-working people who employers deliberately miscategorize so they do not have to pay benefits. Sometimes, it is obvious that an employer is misclassifying a worker, while at other times it is less so.
A knowledgeable attorney can help you determine whether you are misclassified and if so, can help you understand what your legal options are. Contact a Cleveland employee misclassification lawyer today.
How Does Employee Misclassification Happen?
Employee misclassification occurs when an employer labels a worker as an independent contractor, rather than as an employee. The advantage for the employer is that they do not have to pay for worker’s compensation, unemployment, or other required taxes and fees.
Employers must pay part of an employee’s Social Security and Medicare taxes and withhold income taxes. In some instances, such employee misclassification may even deny a worker payment of minimum wage. In certain cases, such employers are engaging in income tax evasion, which is a felony. If a person has suffered financial setbacks due to this misclassification, it may be wise for them to speak with a Cleveland employee misclassification lawyer.
Independent Contractor vs. Employee
A person who is misclassified as an independent contractor when they are actually an employee is not eligible for employer-sponsored group health insurance, retirement plans, or paid vacation and holidays. If an independent contractor gives birth, adopts a child, or must care for an ailing family member, they are ineligible for protection under the federal Family Medical Leave Act.
They are also not eligible for overtime pay. Independent contractors are responsible for filing their own quarterly tax payments and taxes are not withheld from their paychecks. Rather than a W-2, independent contractors receive 1099 forms for their tax returns.
Certain criteria determine independent contractor vs. employee status. These include:
- Does the employer determine the hours worked or does the person performing the tasks? If it is the latter, the person is more likely an independent contractor.
- Who provides the materials and equipment for the task? If these items are furnished by the employer, the worker is usually considered an employee. If the worker provides them, that means the employee is more likely an independent contractor.
- Does the worker make decisions on how to complete a task, or is it dictated by the employer? If the worker makes the decisions, that makes it more likely the worker is an independent contractor. If the employer supervises all work, the worker is more likely an employee.
Contact a Cleveland employee misclassification lawyer to learn more.
What Options Do Misclassified Employees Have in Cleveland?
If an employer misclassified an employee as an independent contractor, certain remedies are available. These remedies include compensation for back wages, back taxes, and interest. Employers are also subject to civil penalties if they were misclassifying employees.
How a Cleveland Employee Misclassification Attorney Can Help
An employee misclassification attorney can thoroughly review the individual situation to determine whether a person qualifies as an employee under the Federal Fair Labor Standards Act (FLSA). If the position falls more in line with the employee than independent contractor under FLSA, the individual may then seek legal recourse.
If you are the victim of employee misclassification, you may need the services of a Cleveland employee misclassification lawyer. Call today and schedule a free initial consultation.
