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An employer-employee relationship comes with so many responsibilities, especially on the part of the former. For the most part, it is the companies that must identify such relationship so that employment matters such as compensation and work hours can be established. However, some of them try to swerve away from what is stated under the law by misclassifying their hires as either exempt, instead of non-exempt, or independent contractors, instead of merely employees.
Basically, misclassifying employees is against the provisions of the Fair Labor Standards Act (FLSA). Sadly, this employment scheme has been on the rise as of late, as evidenced by the recent announcement from the U.S. Department of Labor (DOL) in 2012 in which two big-time companies, FedEx and Wal-Mart, had been sued over employment misclassification.
Wal-mart has since agreed to pay over $5 million in back wages and damages to more than 4,500 employees after a DOL investigation found that the employer misclassified them in order to not provide them overtime wages. Meanwhile, lawsuits against FedEx have had mixed results.
Cases of employee misclassification, particularly on identifying employees as independent contractors, are on the rise today, resulting to lawsuits. Acting deputy administrator Mary Beth Maxwell of the DOL Wage and Hour Division (WHD) said in a press release that such instances deny employees “access to critical benefits and protections to which they are entitled, such as minimum wage and overtime, family and medical leave, and unemployment insurance.”
Some employers often misclassify employees as independent contractors in an effort to save thousands of dollars in workmen’s compensation and unemployment insurance. Worse, it costs states millions in unpaid taxes.
Fortunately, there have been cases wherein misclassified employees working as cable installers, security guards, and even local government workers who came out victorious after filing charges against their employers. Thanks to the DOL’s Misclassification Initiative, California and 12 other states have been on a joint effort to go against employers that engage in misclassifying employees.
Meanwhile, if you work in California and you have been misclassified by your employer as an independent contractor instead of a non-exempt employee (or an exempt employee rather than a non-exempt one), it is important that you exercise your rights. You may file a complaint with the California Department of Labor Standards Enforcement (DLSE), or alternately consult with a Los Angeles labor lawyer for your legal options.
Basically, misclassifying employees is against the provisions of the Fair Labor Standards Act (FLSA). Sadly, this employment scheme has been on the rise as of late, as evidenced by the recent announcement from the U.S. Department of Labor (DOL) in 2012 in which two big-time companies, FedEx and Wal-Mart, had been sued over employment misclassification.
Wal-mart has since agreed to pay over $5 million in back wages and damages to more than 4,500 employees after a DOL investigation found that the employer misclassified them in order to not provide them overtime wages. Meanwhile, lawsuits against FedEx have had mixed results.
Cases of employee misclassification, particularly on identifying employees as independent contractors, are on the rise today, resulting to lawsuits. Acting deputy administrator Mary Beth Maxwell of the DOL Wage and Hour Division (WHD) said in a press release that such instances deny employees “access to critical benefits and protections to which they are entitled, such as minimum wage and overtime, family and medical leave, and unemployment insurance.”
Some employers often misclassify employees as independent contractors in an effort to save thousands of dollars in workmen’s compensation and unemployment insurance. Worse, it costs states millions in unpaid taxes.
Fortunately, there have been cases wherein misclassified employees working as cable installers, security guards, and even local government workers who came out victorious after filing charges against their employers. Thanks to the DOL’s Misclassification Initiative, California and 12 other states have been on a joint effort to go against employers that engage in misclassifying employees.
Meanwhile, if you work in California and you have been misclassified by your employer as an independent contractor instead of a non-exempt employee (or an exempt employee rather than a non-exempt one), it is important that you exercise your rights. You may file a complaint with the California Department of Labor Standards Enforcement (DLSE), or alternately consult with a Los Angeles labor lawyer for your legal options.
