understand your rights

impacts of misclassification

minimum wage and overtime pay

Misclassified employees may not receive the minimum wage and overtime pay to which they are entitled under the Fair Labor Standards Act (FLSA) or other benefits and protections to which they are entitled under the law.

Misclassification of Employees as Independent Contractors Under the Fair Labor Standards Act

Social Security and Medicare taxes

Employers are obligated to pay half of the Social Security and Medicare taxes for workers designated as “employees”. Contingent workers are responsible for covering all of those taxes themselves, taking that burden off of the employer.

Understanding employment tax

job-protected family and medical leave

Employees of all public agencies, all public and private elementary and secondary schools, and companies with 50 or more employees are protected under the Family and Medical Leave Act (FMLA). Eligible employee are entitled to up to 12 weeks of unpaid leave each year for any of the following reasons:

  • The birth and care of the newborn child of an employee;

  • For placement with the employee of a child for adoption or foster care;

  • To care for an immediate family member (i.e., spouse, child, or parent) with a serious health condition; or

  • To take medical leave when the employee is unable to work because of a serious health condition

employer-paid benefits

Employers typically pay a percentage of their employees' health insurance premiums, with the average contribution being 83% for self-only plans and 73% for family plans. Misclassified employees miss out on that as well as other benefits or perks that may be offered to employees, like:

  • Paid time off

  • Paid holidays

  • Paid medical leave

  • Life insurance

  • Retirement contributions

  • Gym reimbursement

  • Technology or remote work stipend