What is a misclassification lawsuit?

What is a misclassification lawsuit?

Updated May 18, 2021 California law allows workers who are misclassified as independent contracts (but should have been treated as W2 employees) to file a wage and hour lawsuit. Damages against the employer can include: unpaid wages, unpaid overtime, unpaid meal and rest breaks, as well as penalties and interest.

Why are there so many lawsuits over misclassification?

Today, lawsuits abound over misclassification of workers. Many of these claims are coming out of the gig economy, brought by freelancers, delivery people, drivers, and more. The reason is simple: Employees are entitled to many rights and benefits that are not available to independent contractors.

Can you sue an employer for misclassifying you as an employee?

Employees are entitled to many rights and benefits that are not available to independent contractors. Today, lawsuits abound over misclassification of workers. Many of these claims are coming out of the gig economy, brought by freelancers, delivery people, drivers, and more.

What are individual lawsuits for independent contractor misclassification?

Individual lawsuits: Individual lawsuits are filed by a single plaintiff, for their own benefit, to address allegations of independent contractor misclassification.

What can the Dol do about employee misclassification?

The DOL has partnered with the Internal Revenue Service (IRS) and state workforce agencies to combat the practice of worker misclassification and to recover back wages and unpaid taxes.

What can happen in an employee misclassification lawsuit?

On the other hand, a worker can file a Workers’ Comp Claim to their state Department of Labor branch if the employer refuses to shell out the proper compensation and benefits. What Can Happen in an Employee Misclassification Lawsuit?

Individual lawsuits: Individual lawsuits are filed by a single plaintiff, for their own benefit, to address allegations of independent contractor misclassification.

The DOL has partnered with the Internal Revenue Service (IRS) and state workforce agencies to combat the practice of worker misclassification and to recover back wages and unpaid taxes.

Can a contractor file a lawsuit against an employee?

The misclassification of employees as independent contractors is a major concern for America’s workforce and its economy. Workers who are treated as contractors—but should be classified as employees—may be able to file a lawsuit against the company they work for and recover back pay and other benefits.