Imagine diligently paying into your company’s health insurance plan. Yet, at a critical time, you discover you do not qualify for coverage because of a misclassification. This situation is a harsh reality for many workers. It is important to know your legal options if such a misclassification occurs.
Misclassification limits your access to key employee benefits
Misclassification can significantly affect your rights and benefits:
- No extra pay for overtime work
- No access to health insurance
- No retirement benefits
- No unemployment insurance provided
- No access to workers’ compensation
- Ineligibility for paid time off and sick leave
- Increased tax burden on the worker
Misclassification does not just affect individual workers. It also impacts entire industries and the economy.
Employers who misclassify workers often do so to cut costs. They avoid paying payroll taxes, benefits and other expenses associated with employees.
This practice is illegal. Companies caught violating labor laws may face severe penalties. Employees who have been misclassified have the right to pursue legal action.
Taking prompt legal action is crucial
If you believe your employer has misclassified you, you may have grounds for legal action. The Department of Labor allows workers to file complaints about misclassification. In some cases, employees can recover back pay and damages through lawsuits.
Determining your correct classification can be tricky. The IRS employs a 20-factor test to assess the status of a worker. Courts consider factors like the degree of control an employer has over the worker and the worker’s opportunity for profit or loss.
When resolving employment law issues, it is best to have a skilled lawyer with you. This ensures you take the right steps against your employer and safeguard your rights as a worker.