Federal and state laws provide powerful protections for employees. These include requirements for paying minimum wage, overtime, and other benefits. However, independent contractors and some salaried employees are not covered by minimum wage and overtime laws. Accordingly, companies may try to misclassify workers as independent contractors or exempt salaried employees in order to cut costs and skirt the law.
If you suspect that your employer has misclassified you, the wage and hour attorneys at Tittle and Perlmuter can help you determine your status under the law and demand compensation for lost wages. Speak with a Sandusky salary & independent contractor misclassification lawyer for more information.
Most people who work for a company are “employees” as defined by the FLSA and state laws. “Employees” work under the employer’s direct supervision and control at designated places and times.
By contrast, independent contracts have more freedom to perform their jobs on their own terms. They may work from home or off-site and can keep irregular hours, following deadlines instead of workdays.
A worker’s status as an employee or independent contractor has consequences for both workers and employers. An employer does not need to withhold taxes from an independent contractor’s paycheck and does not need to report earnings to the IRS. More importantly, independent contractors do not enjoy many protections under state or federal laws. This may include:
It is easy to see why misclassifying an employee as an independent contractor can have a significant impact.
Like the classifications for independent contractors vs. employees, the distinction between exempt and non-exempt salaried employees is also important to understand. To qualify as exempt, the employee must earn a minimum salary of $36,568 annually and must be primarily engaged in job duties that meet statutory exemptions. While exempt employees still receive unemployment and workers’ compensation protection, many other labor laws, including minimum wage and overtime requirements, do not apply.
]However, a workplace that misclassifies workers as exempt may be liable for nonpayment of wages. In these cases, affected workers should speak with a local salary misclassification attorney.
It is important for both workers and employers to understand the federal and state labor laws that outline worker classifications, as they affect the employer’s obligations to provide fair pay and benefits to their workers. Salaried employees may have no limit on the hours they can work, but they generally enjoy greater benefits. On the other hand, independent contractors may enjoy more flexibility on the job but do not qualify for wage and hour protections.
If you believe you are the victim of an employer’s failure to pay proper wages, a Sandusky salary & independent contractor misclassification lawyer can provide invaluable support. Regardless of whether your case involves improper withholding of overtime pay, a failure to provide health insurance, or minimum wage violations, the legal team at Tittle & Perlmuter is here to help. Call today to discuss your situation.