Misclassifying employees in order to shortchange them on their pay is commonplace and may be illegal. Misclassification cases are complex, but the California misclassification attorneys at Wilshire Law Firm are always at the forefront of this evolving legal landscape. If you believe your employer has classified you as an exempt employee or an independent contractor in an effort to avoid paying you overtime, you do have rights.
Table of contents
- Misclassification of Employees Is a Problem in Tech Industry
- Ongoing Lyft and Uber Misclassification Lawsuits
- Gig Worker Misclassification of Employees
- Independent Contractor vs. Employee: Use the ABC Test
- Misclassification of Employees as Exempt in California
- Free Case Review with a Trusted California Employee Misclassification Law Firm
- Our Los Angeles Office Location
Misclassification of Employees Is a Problem in Tech Industry
For IT and computer technology professionals, long hours, working weekends and being on call come with the job. When these employees are classified as exempt white-collar workers or independent contractors by their employers, it often comes with serious implications that may include:
- Missing out on important protections and benefits that come with employee status
- Unjustly depriving laborers of the ability to collect overtime pay for their long hours of hard work.
- Ineligibility to collect other forms of compensation like vacation time or sick leave
- Limited rights to file complaints about workplace safety and discrimination due to the lack of job protection afforded by an employer-employee relationship.
As this trend continues to grow, laborers must take proper steps to protect their rights under applicable California employment law.
Get your important questions answered for free in a confidential environment with our reliable and accomplished misclassification attorneys. Call us 24/7 to get started.
Ongoing Lyft and Uber Misclassification Lawsuits
In 2020, a California judge ordered Uber and Lyft to reclassify their workers from independent contractors to employees with benefits. This order aims to protect California Lyft and Uber drivers with insurance, overtime pay, paid sick leave, and similar related employee benefits.
Many class action lawsuits against Uber, Lyft, and rideshare companies have already moved forward. At Wilshire Law Firm, our California employee misclassification lawyers can help you file a Lyft or Uber lawsuit. You deserve to be treated like a formal employee and we will fight for the justice and compensation you deserve.
Gig Worker Misclassification of Employees
The gig economy has been a major disruptor in the modern labor landscape, allowing workers to find flexible employment opportunities and employers to access talent on demand. But it has also come with its own set of challenges, including misclassification of employees as independent contractors in California.
This misclassification also denies these workers fundamental rights such as overtime pay, minimum wage protection and other employee benefits that are otherwise mandated by state law.
You don’t have to settle for less than you deserve. We hold employers accountable for denying fair compensation for their work due to improper classification. Our California labor
law attorneys at Wilshire Law Firm have joined lawsuits filed across the state challenging companies’ practice of classifying their workers as independent contractors instead of employees.
If you’re a gig worker who has been misclassified, call our seasoned legal professionals today for a free review of your important case.
Independent Contractor vs. Employee: Use the ABC Test
The California Supreme Court utilizes the ABC test to differentiate between independent contractors and employees. A laborer is considered an employee and not an independent contractor unless the hiring entity satisfies all three of the following conditions:
- The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
- The worker performs work that is outside the usual course of the hiring entity’s business; and
- The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
Misclassification of Employees as Exempt in California
Under California law, employers do not have to provide exempt employees and independent contractors with overtime pay, meal breaks, or rest breaks (although employees who receive a commission are entitled to rest breaks).
California law, however, assumes that all employees are entitled to overtime pay, and that all persons who perform work are employees.
As a result, in order for an employer to lawfully pay you as an exempt employee, and assuming your pay is not based on a commission or outside sales activities, the employer must prove that you:
- Are paid at least double the current minimum wage for a 40-hour work week.
- Perform mostly white-collar tasks for more than half of their workweek. Examples include the hiring, firing and managing of other employees.
- Exercise independent judgment and discretion in your work.
Additionally, if the above factors do not apply and you are a computer professional, the employer must prove that you:
- Are paid at least $53.80 per hour or have an annual salary of $112,065.20 (2023 rates, this amount changes every year).
- Spend more than half of your workweek engaged in intellectual or creative work that requires the exercise of discretion and independent judgment.
- Are highly skilled and proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, or software engineering.
Common fields where IT and computer professionals are not exempt from overtime are installers, applications testers, troubleshooters, and network administrators because this type of work is not intellectual or creative within the meaning of the California exemption.
Free Case Review with a Trusted California Employee Misclassification Law Firm
California has strict deadlines – known as the statute of limitations – for taking legal action against an employer. Typically the deadline to file an Employment Lawsuit involving unpaid wages in California is three (3) years. If you’re involved in an employee misclassification dispute, our team of California personal injury lawyers have more than 400 legal professionals here for you. Now is the time to seek accurate help and solid legal representation. Call Wilshire Law Firm 24/7 at (800) 501-3011.
Schedule your free, confidential case evaluation today and pursue the justice and compensation you deserve.
Our Los Angeles Office Location
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