Misclassification of employees is the categorizing of workers as independent contractors rather than employees. This illegal practice enables employers to cut costs and save money. Misclassified workers are often underpaid and left without benefits or legal protections.
Worker misclassification has a negative financial impact on the government. When employers avoid paying unemployment taxes, insurance, and Federal taxes/premiums, the government loses out on significant revenue.
INDEPENDENT CONTRACTORS — Independent contractors are workers who retain independence in their work. They cannot be ordered to work during certain hours or at certain locations. Independent contractors decide how much they will charge.
Independent contractors are not protected by the Federal Fair Labor Standards Act. Minimum wage, overtime, and hours worked are not regulated for independent contractors. They do not receive compensation for work-related injuries, medical leave, or