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Why being a misclassified worker matters

On Behalf of | Sep 22, 2017 | Wage & Hour Law

Working for a company but not being classified as an employee can cause quite a few issues. Most people — whether they reside in Colorado or elsewhere — just want jobs, good jobs that offer a living wage and benefits. Unfortunately, some may find that they are hired as independent contractors rather than employees. Being a misclassified worker can mean not receiving all the benefits to which one believed he or she was entitled.

In order to be classified as an employee, there are a number of factors that must be present. First, the work which one performs has to be an integral part of the employer’s company. Second, the employee must be financially dependent on the employer. Finally, third, the nature of the work, pay and hours worked must be set by the employer.

According to the Fair Labor Standards Act, those who primarily set their own hours, are not economically dependent on one particular employer and who take on comparable risk of loss as an employer may be identified as independent contractors. Not everyone is aware that they are signing employment agreements that will list them as such. This may only cause a number of problems down the line.

There are those in Colorado who want to be independent contractors, as they like working for themselves. There are others, though, who desire the security of having that employee status. This means guaranteed pay and benefits. Those who believe that their employee status has been misclassified may seek legal help in order to correct the issue and to file civil claims in an effort to seek compensation for any losses experienced as a result of the misclassification.

Source: dol.gov, “Fact Sheet #13: Am I an Employee?: Employment Relationship Under the Fair Labor Standards Act (FLSA)“, Accessed on Sept. 22, 2017