It has been observed that there is certainly an increase in the number of independent contractors whom companies can hire for a specific task they want to be done. However, there are also some companies who misclassify their supposedly employees as independent contractors. This is an ongoing problem right now and it has already captured the attention of the Department of Labor. Some of the employers unknowingly misclassify their employees but there are also others who intend to do this so that they could save on the payment of the benefits of the employees. To help prevent the confusion of the misclassification, the DOL has released the Administrator’s Interpretation to help out the employers to determine if their worker is to be classified as an employee or an independent contractor.
The Administrator’s Interpretation
When an employee gest improperly classified as an independent contractor, he or she loses the chance to get the minimum wage, unemployment insurance, overtime pay, and other worker’s compensation. The misclassification can also affect the tax revenues of the said worker and it can be more difficult for them to be in the situation that they are currently in.
It is written in the document that cutting on cost is the main reason why the employers purposely misclassify their employees. Although there are still some employers who unintentionally misclassify their employees because they didn’t really understand the classification. This is the main reason why the Administrator’s Interpretation was created. It helps make sure that employers know how to really classify their workers.
The Fair Labor Standard Act, the worker’s status is determined through the use of a multi-factor test that is more commonly known as the economic realities test. This test is mainly focused on discovering if the said worker is economically dependent on the employer. If it is found out that he or she is economically dependent on the employer, they will consider it as being an employee rather than an independent contractor. There are different factors that are considered when determining the financial dependency of the worker on the employer such as whether or not the task being done is an important part in the business of the employer, whether or not his or her managerial skills play a part in the gain or loss of profit and many others.
Seek A Lawyer For Help
For those who think that they are misclassified, you can contact the best employment law firm to seek out advice on how to go about with your situation. The employment lawyers have knowledge in that field to help you file a claim so that you can be correctly classified. It is for your best interest that you make sure to do this as soon as possible so that you can start earning the benefits that is really due to you. There are lawyers that can help out in the assessment of your claim and they can offer it for free while there are also others who can charge you for it. Make sure to choose your lawyers carefully because your career depends on them.