A Widespread Problem That Costs Workers

Across the U.S., misclassification as an independent contractor affects millions of workers, costing the economy nearly $8 billion annually in unpaid employment taxes (Source: National Employment Law Project). In California, the financial and emotional toll on workers is particularly severe, as misclassification deprives them of the protections and benefits they deserve under the law.

What Does it Mean to be an Independent Contractor?

Independent contractors operate as self-employed individuals, controlling how, when, and where they work. They’re not entitled to benefits such as overtime pay, health insurance, or workers’ compensation. However, many workers who don’t fit this definition are wrongly classified, often to save employers money at the worker’s expense. This misclassification allows companies to avoid responsibilities like payroll taxes, unemployment insurance, and providing basic workplace protections. Unfortunately, it leaves workers footing the bill for expenses and taxes that should never have been theirs to bear.

Common Victims of Misclassification

Some occupations are more vulnerable to misclassification than others, especially in industries where companies seek to cut costs or maintain control while dodging legal responsibilities.
Workers frequently misclassified as independent contractors include:

• Gig Economy Workers: Drivers for ride share apps, food delivery couriers, and freelance platforms.
• Construction and Manual Laborers: Electricians, plumbers, and general contractors performing tasks that are integral to the company’s business.
• Creative Professionals: Photographers, graphic designers, writers, and other freelance creatives who are often controlled by strict contracts.
• Healthcare Professionals: Nurses, therapists, and home health aides who work scheduled shifts but are labeled contractors.
• Truck Drivers and Couriers: Particularly those working for logistics companies that dictate delivery routes and schedules.

If your work in any of these industries feels like employment rather than independent contracting, you might be a victim of misclassification.

The Cost of Misclassification for Workers

Employers who misclassify workers often do so for financial gain. Here’s how this practice hurts you:

• No Wage Protections: Without employee status, you’re not guaranteed minimum wage or overtime pay, even if you work long hours.
• Lack of Benefits: Health insurance, retirement contributions, and paid leave are often reserved for employees, leaving you without support.
• No Workers’ Compensation: Injured on the job? Misclassified workers are left to cover medical bills and lost wages on their own.
• Tax Burden: Misclassified workers pay double the payroll taxes of employees because employers avoid contributing their share.
• Legal Vulnerabilities: You’re left unprotected from workplace harassment, discrimination, and wrongful termination.

Misclassification isn’t just unfair—it’s illegal. California law provides robust protections to hold employers accountable for these practices.

California Law Protects You

California has set the standard for tackling misclassification, particularly with the adoption of the ABC Test following the landmark Dynamex v. Superior Court of Los Angeles decision. This test shifts the burden onto employers to prove a worker is truly an independent contractor.

Under the ABC Test, you’re presumed to be an employee unless your employer can prove:
A: You’re free from their control in how you perform your work.
B: Your work falls outside their usual course of business.
C: You’re customarily engaged in your own independent trade or business.

Even if an employer has you sign a contract as an independent contractor, the law evaluates your role based on these criteria—not their paperwork.

How to Recognize Misclassification

Not sure if you’ve been misclassified? Here are common signs:

• You’re required to follow a company’s specific schedule or methods of working.
• You perform work essential to the company’s primary business.
• You’re prohibited from working for other companies.
• The company provides the tools, equipment, or space necessary for your job.
• You’re treated like an employee but denied benefits and legal protections.

What to Do if You Suspect Misclassification

Gather Evidence: Keep detailed records of your job duties, work hours, and any communications with your employer.
Understand Your Rights: Familiarize yourself with California’s Labor Code and the guidance provided by the California Department of Industrial Relations (DIR FAQ).
Consult with a Legal Advocate: Employment law can be complicated, but a seasoned attorney can analyze your case, confirm your classification, and help you seek justice.

What Can I Do if My Employer Refuses to Reclassify Me as an Employee?

If you believe you’ve been wrongly classified as an independent contractor, you have several options to take action:

• File a Wage Claim: Submit your claim to the Labor Commissioner’s Office to recover lost wages and benefits.
• Report Widespread Violations: If the issue affects multiple workers, you can file a Report of Labor Law Violation with the Labor Commissioner’s Office.
• Pursue Legal Action: You can file a lawsuit in court to challenge the misclassification and seek compensation for damages.

What Happens if My Employer Retaliates After I Complain About Misclassification?

California law protects workers from retaliation for standing up for their rights. If your employer fires you, denies you work, or otherwise punishes you for complaining about being misclassified—or for filing or planning to file a claim—you can take action.

• File a Retaliation Complaint: The Labor Commissioner’s Office investigates claims of retaliation and can help hold employers accountable.
• Pursue Legal Action in Court: If you prefer, you can bypass the Labor Commissioner and file a lawsuit directly in court to seek justice.

Keep in mind that these protections generally apply to workers who should be classified as employees under the law, not those genuinely operating as independent contractors. Whether you file with the Labor Commissioner or pursue a court case, standing up against retaliation is your right

Compensation You May Be Entitled To

If you’ve been misclassified, you may be eligible for compensation that includes:

Back Pay: For unpaid wages, overtime, and benefits.
Expense Reimbursement: For tools, materials, or travel you were forced to pay for.
Penalties: Employers may owe fines for violating labor laws.
Legal Fees: California law allows for the recovery of attorney’s fees in many cases.

Why Choose Fraigun Law Group?

When employers exploit loopholes, you need a legal team that knows how to close them. Fraigun Law Group is dedicated to turning the tables on corporations that put profits over people. With a track record of fighting—and winning—against major employers, this firm delivers results where others fall short. They don’t just take cases; they take on the fight for justice.

Common Questions about Independent Contractor Classifications

  • CAN I STILL CLAIM BENEFITS IF I’VE SIGNED A CONTRACT AS AN INDEPENDENT CONTRACTOR?

    Yes. Contracts don’t override the law, and courts look at the reality of your work relationship rather than the title given to it.

  • WHAT INDUSTRIES ARE MOST AFFECTED BY MISCLASSIFICATION?

    Industries like gig work, trucking, healthcare, construction, and creative fields are common hotspots for misclassification.

  • WHAT’S THE DIFFERENCE BETWEEN AN EMPLOYEE & AN INDEPENDENT CONTRACTOR?

    Employees are entitled to workplace protections, minimum wage, benefits, and more, while contractors typically operate as their own businesses.

  • CAN I FILE A CLAIM EVEN IF I’M NO LONGER WORKING FOR THE EMPLOYER?

    Yes, you can still file a claim as long as it’s within the statute of limitations, which can range from 1 to 3 years depending on the violation.

  • WILL FILING A CLAIM AFFECT MY FUTURE EMPLOYMENT?

    No employer can legally retaliate against you for asserting your rights, and your legal team can help protect you from such actions.

  • WHAT DIFFERENCE DOES IT MAKE IF A WORKER IS AN EMPLOYEE RATHER THAN AN INDEPENDENT CONTRACTOR?

    California’s wage and hour laws (e.g., minimum wage, overtime, meal periods and rest breaks, etc.), workplace safety laws, and retaliation laws protect employees, but not independent contractors. Additionally, employees can go to state agencies such as the Labor Commissioner’s Office to seek enforcement of these laws, whereas independent contractors must resolve their disputes or enforce their rights under their contracts through other means.

Your Fight for Justice Starts Here

If you’ve been misclassified as an independent contractor, you’re not alone—and you don’t have to fight alone. Fraigun Law Group has the experience, tenacity, and commitment to hold employers accountable and secure the compensation and protections you deserve.

Contact us today to take the first step toward reclaiming your rights. Justice won’t wait—and neither should you.