Hantzes & Associates | Employment & Business Law

Contact Us Today: 703-378-5000

  • Home
  • About
  • Our Practice
    • For Employers
    • For Employees
    • Business Law
    • Commercial and Residential Real Estate Law
    • Malpractice Law
  • Blog
  • Contact
  • X Close
Hantzes & Associates | Employment & Business Law

Call: 703-378-5000

  • Home
  • About
  • Our Practice
    • For Employers
    • For Employees
    • Business Law
    • Commercial and Residential Real Estate Law
    • Malpractice Law
  • Blog
  • Contact
  • X Close
We Deliver Real Solutions For Real Legal Problems

How is employee misclassification a form of wage theft?

On Behalf of Hantzes & Associates | Jun 5, 2023 | Employment Law - Workers |

When employers wrongfully misclassify an employee as an independent contractor, that can hurt the worker in numerous ways.

By labeling employees as independent contractors, employers create the illusion of independence while stripping away crucial labor protections. It’s another way that dishonest employers can exploit their workforce and evade their legal obligations. While the consequences of misclassification are far-reaching, one of the most devastating outcomes is wage theft.

Misclassification denies a worker of minimum wage protections and overtime

One of the most blatant forms of wage theft arising from misclassification is the denial of minimum wage and overtime pay. Independent contractors are free to work for any wage they feel is fair – which means that employers can pay them less than minimum wage.

Overtime isn’t generally a consideration for these workers, no matter how long they work – not even if they work more than eight hours a day, every weekend and on holidays. They’re essentially at the mercy of unscrupulous employers who prioritize profit over fair compensation.

It also deprives workers of the additional on-the-job benefits they are due

Employee benefits, such as health insurance, retirement plans and paid leave, are typically not granted to independent contractors. Misclassified workers are left without essential protections and safety nets that a company’s employees enjoy.

When the perks of a job translate to real dollars, that takes money out of the misclassified workers This disparity also perpetuates income inequality and leaves workers without a safety net, making them vulnerable to financial hardship and medical emergencies.

Misclassified workers may also not be reimbursed for work-related expenses

When you’re an employee, your employer usually has to provide you with things like personal protective equipment (PPE), the tools for the job (including electronics) and other equipment – but independent contractors typically have to provide their own. Employers exploit misclassification by shifting the cost for these things onto their workers, further reducing the workers’ net pay.

The misclassification of employees as independent contractors is a grave issue. Sometimes, it’s done by mistake – and sometimes unscrupulous employers do it to deny workers their rightful wages, benefits and protections. If you’re a victim of employee misclassification, it may take seeking legal assistance to help you assert your rights.

 

Recent Posts

  • Don’t vent about your employer online
  • The job protection rights of non-provisional federal workers
  • Can employers calculate payroll in large time increments?
  • What should employers remember about dress codes?
  • The most common types of wrongful termination

Archives

  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020

Categories

  • Business Law
  • Business Litigation
  • Employment Law – Employers
  • Employment Law – Workers
  • Firm News
  • Professional Malpractice
  • Uncategorized
  • Wage and Hour Disputes
  • Workplace discrimination

RSS Feed

Subscribe To This Blog’s Feed

FindLaw Network

Contact Us Now

Get the answers you need for moving forward

Hantzes & Associates | Employment & Business Law

Office Location

10513 Judicial Dr.
#100
Fairfax, VA 22030

Phone: 703-378-5000

Fax: 703-448-4434

Fairfax Office
  • Follow
  • Follow
Review Us

© 2025 Hantzes & Associates • All Rights Reserved

Disclaimer | Site Map | Privacy Policy | Business Development Solutions by FindLaw