Los Angeles Salary & Independent Contractor Misclassification Lawyer

Too often, employers will take whatever actions they can to bolster their profits and reduce their employees’ pay and benefits. An important example of this is misclassifying employees as independent contractors, which has gained much traction in the gig economy.

If you are an employee whose employer misclassified you as an independent contractor, this compromises your compensation and legal protections. Discuss your legal options with an experienced Los Angeles salary & independent contractor misclassification lawyer at Erkel Law, P.C., today.

Are You an Employee or an Independent Contractor?

State law is exacting when it comes to whether a worker is an employee or a contract worker, and this is where an employment attorney in Los Angeles can help you confirm your classification. Put simply, if you have an employer, you are likely an employee. If, however, you have your own business and serve one or more customers or employers but do not work directly for them, you are an independent contractor.

In California, there are two basic tests in place to help make this determination.

The ABC Test

The ABC test helps identify when employers misclassify workers as independent contractors, which means the employees invoice those they work for and receive payment via a 1099. Three qualifications must be met for an individual to qualify as an independent contractor. First, the individual’s work performance is outside of the company’s direction or control. Additionally, the individual must work outside of the company’s usual course of business. Lastly, the individual typically performs the same kind of work as the company in question. If each of these applies, the individual is likely an independent contractor. If even one does not apply, however, they very likely qualify as an employee.

The Borello Test

There are certain jobs specifically identified in independent contractor law. If you are in one of these positions, the Borello test will help determine if you are an independent contractor or an employee.

The kinds of jobs found on the independent contractor list include doctors and medical specialists, lawyers, architects and engineers, accountants, private investigators, insurance brokers, investment advisers, registered security brokers or dealers, and those in direct sales.

For those who work in these professions, the basis for determining whether you are an employee or an independent contractor is the degree of control the hiring entity has over you. However, the test also considers the following factors to assess the economic reality of the work relationship:

• The degree to which the individual engages in a distinct business or occupation
• Whether the work the individual performs is part of the company’s regular business
• Whether the individual or the employer supplies the tools and provides the work location
• The degree to which the individual invests in the equipment and materials they use in their profession
• The method of payment used, which can mean being paid by the job or by the measurement of time
• Each party’s understanding of the nature of the work relationship

This is a more challenging means of determining whether you are an employee or an independent contractor, and it generally requires more careful legal analysis.

Those Most Likely To Be Misclassified

There are certain professions that are more susceptible to an incorrect classification as independent contractors than others, and an attorney experienced with salary disputes in Los Angeles can help clarify these designations. These professions include workers in IT, sales, customer service, and health care. Also, misclassification often occurs for tipped employees, construction workers, and some gig workers.

Reach Out to an Experienced Salary and Independent Contractor Misclassification Attorney in Los Angeles Today

A proactive Los Angeles salary & independent contractor misclassification lawyer at Erkel Law, P.C., has the legal insight and drive to help ensure your correct classification and to help protect your legal rights. Learn more by contacting us online or calling us today.