Chances are, you know how your job is classified—you are either an employee or an independent contractor. But do you know if your position is classified correctly? If it isn’t, you could be missing out on plenty of benefits that are owed to you. The term job misclassification refers to an employer classifying as an independent contractor someone who meets the criteria for an employee.
Pros and Cons of Being an Independent Contractor
Being an independent contractor has its benefits:
- Contractors are in business for themselves.
- Contractors are not under full-time direction and supervision of an employer.
- When a contractor is hired to do a job, the contractor is generally the one who determines how the job will get done.
- Contractors can work for more than one client.
There is a tradeoff for the beauty of being independent. Here are some of the drawbacks of not being the employee of a company:
- Employers do not withhold taxes from contractors’ paychecks; contractors have to pay the state and federal government taxes themselves.
- Employers do not pay workers compensation insurance or unemployment tax for contractors.
- Independent contractors must pay both the employer and the employee share of Social Security and Medicare tax.
- Contractors have to supply their own office space, tools, and equipment.
- Contractors receive no employee benefits, such as insurance, vacation pay, and retirement plans.
In addition to these disadvantages, according to the Kentucky Equal Justice Center, when workers are erroneously classified as independent contractors, they “lose important protections under laws and programs designed to help employees,” including the following:
- Minimum wage requirements;
- Overtime pay;
- Employee health and safety laws;
- Medical and family leave laws;
- Workers compensation insurance; and
- Unemployment benefits.
If you believe that your job in Kentucky may be misclassified, contact the Louisville class action litigation attorneys at Gray and White Law. Call us toll free at 888-450-4456 or locally at 502-210-8942. We’ll help locate any other people that share your situation, and we’ll put together a strong class action lawsuit to get justice—including any back pay you are owed—for all of you.