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What is Employee Misclassification?

September 17, 2019

What is Employee Misclassification?

For years, companies around the nation have struggled to identify whether their team members should be classified as employees or independent contractors. In some cases, organizations have discovered that they misclassified the people working for them. However, not all companies are willing to make necessary changes when they realize their errors.

In fact, misclassification can sometimes be a deliberate method for an employer to skirt paying the taxes owed to employees. Not surprisingly, one of the ways that misclassification often rears its head is when someone wants to submit a Workers’ Compensation claim, only to realize they have been misclassified as an independent contractor. At this point, many injured individuals turn to a Workers’ Compensation lawyer to fight for their rightful benefits.

Differences Between Employees and Independent Contractors

There are several key differences between an employee and an independent contractor. The most notable is that an employer tells an employee where to work, how to do the work, and when to work. Whereas, an independent contractor must complete the work, regardless of how or where it is done.

For example, a consultant working as a coach for a company’s upper management team may be paid to complete a project. While some aspects of the project might happen on site, the other parts could be done anywhere. If the project is completed, the executive coach will be paid. In this case, the coach is an independent contractor.

By contrast, consider a part-time human resources trainer. The trainer is expected to come into the office 25 hours each week to mentor new hires. The trainer is given a specific work schedule each week, and all work must be completed on-site during company hours. The trainer is not an independent contractor, but an employee, since the trainer’s work is being controlled by the employer.

Companies should figure out whether people are employees or independent contractors before they get into trouble. With flexible working arrangements and remote workers, the lines have become blurred. Yet, countless companies do not take into consideration how costly it can be if they are caught misclassifying employees, especially if the employees are seriously hurt while at work.

Cherry Hill Workers’ Compensation Lawyers at DiTomaso Law Advocate for Misclassified Workers

If you were injured at work, talk to a Cherry Hill Workers’ Compensation lawyer at DiTomaso Law right away. We will fight to obtain the benefits you deserve for your injuries. Located in Cherry Hill, New Jersey, we serve clients throughout South Jersey, including Mt. Holly and Camden County. Call us at 856-414-0010 or contact us online for a free consultation today.

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