There has been a widespread problem among employing companies in America recently and it causes major problems for both individuals and the government. This problem is known as misclassification and specifically has to do with employees of a company being labeled as independent contractors, rather that full fledged employees. This might not seem like a big deal, but there are numerous problems that can arise as a result of this.
The largest problem that results from employee misclassification is that these kind of employees do not receive the normal benefits that regular ones would have. This includes, though is not limited to, medical insurance, dental coverage, and workers’ compensation benefits. Being classified as an independent contractor also means that Social Security and unemployment taxes are not being paid and thus these benefits could be denied should the situation arise.
Why would a company want to misclassify someone as an independent contractor? The sole intention of this would be to dodge having to pay taxes and benefits for people who fall under this category. This may be beneficial to the company, but it is not legal and can cause great harm to the individual. For example, if an employee is injured on the job, he or she is eligible for workers’ compensation to cover medical expenses. This would not be the case if that individual was misclassified; no benefits would be given and the person would be left out of work and out of luck.
The biggest way to fight employee misclassification, as an employee, is to determine if you are being covered for benefits and to know what those are ahead of time. If a situation does arise where you suspect your employer is taking advantage of you or refusing to pay workers’ comp or other benefits, consult with a lawyer immediately to determine the best course of action for you. To learn how we at the Franco Firm can serve you in this way, please call us at (813) 872-0929.