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What Should I Do If I Have Been Misclassified As an Independent Contractor?

January 26, 2026 Legal Team

If you believe you have been misclassified as an independent contractor, the first thing you should do is evaluate how your job actually functions and begin documenting your work relationship.

Misclassification can cost you significant wages and benefits, so taking early steps is critical to protecting your rights under California law. 

What Should I Do If I Have Been Misclassified As an Independent Contractor?

If you have been misclassified as an independent contractor, contact your Orange County independent contractor misclassification lawyer to discuss your legal options. Schedule your free consultation today.

Why Misclassification Is a Serious Issue in Orange County

Being labeled an independent contractor shifts costs and risks from the company to the worker. Contractors are expected to pay their own taxes, cover work expenses, and forego benefits such as workers’ compensation and unemployment insurance. Employees, by contrast, are entitled to minimum wage, overtime, paid breaks, reimbursement for business expenses, and other legal protections.

If you should legally be treated as an employee, misclassification can result in significant unpaid compensation over time. If you have experienced unfair payment, consult our Orange County wage and hour lawyer to learn more about your legal options.

Look at How Your Job Actually Works

California does not rely on job titles or contracts alone. The focus is on how the work is performed in reality. Warning signs of misclassification include:

  • The company controls your schedule and how you perform your work.
  • You perform tasks that are central to the company’s business.
  • You do not operate an independent business offering services to the public.
  • You are paid hourly or by shift rather than by project.
  • The company provides tools, equipment, or training.

Even if you receive a 1099 form or signed an agreement calling you a contractor, that does not automatically make the classification lawful.

Start Documenting Your Work

If you suspect misclassification, begin collecting records that reflect your working relationship. Helpful documentation includes:

  • Work schedules and time records.
  • Pay stubs or payment summaries.
  • Emails or messages showing supervision or instructions.
  • Written policies or training materials.
  • Proof of expenses you paid out of pocket.

This information can help show how much control the company exercised and how the job functioned on a daily basis.

Do Not Quit Without Understanding the Impact

Many workers feel pressure to resign once they realize they are being misclassified. Quitting may not always be necessary and can affect potential claims. In some situations, workers are still entitled to unpaid wages and penalties even after leaving, but timing and circumstances matter.

Before taking action, it helps to understand how resignation or termination may affect your rights.

Know What You May Be Owed

Misclassified workers may be entitled to recover more than just unpaid wages. Potential recovery can include:

In many cases, misclassification affects multiple workers in the same role.

Be Aware of Retaliation Protections

California law protects workers who raise concerns about misclassification. Retaliation may include wrongful termination, reduced hours, threats, or changes in job duties after a worker questions their classification. Even if the company disputes whether misclassification occurred, punishing a worker for asserting rights can create separate legal violations.

Speak to an Orange County Employment Law Attorney

Misclassification cases are rarely straightforward. Employers often argue that contractors are independent, flexible, or free from control, even when the facts suggest otherwise. Companies also control payroll records and contracts, which can make it difficult for workers to evaluate their situation alone.

Additionally, misclassification often overlaps with wage violations, tax issues, and benefit denials, requiring careful legal guidance rather than a quick fix.

An employment lawyer in Orange County can review how your job functions and identify whether misclassification occurred. They will also uncover any related violations, protect your rights, and work hard to hold your employer accountable.