Orange County Independent Contractor Misclassification Attorney

Our dedicated employment lawyers in Orange County have helped numerous employees receive compensation for overtime and benefits that they were wrongfully denied.

Call (949) 379-6250 to schedule a free consultation today. We take many cases on a contingency fee basis, meaning you don’t pay fees unless we win.

Why Choose Aegis Law Firm?

For nearly two decades, we have helped employees recover the wages and benefits they earned. Our trial-ready attorneys do not back down from large employers or complex cases.

• Proven Success: We have recovered more than $300 million in verdicts and settlements for California workers.
• Focused Experience: We concentrate exclusively on employment law, including independent contractor misclassification.
• Aggressive Advocacy: We take on cases that others will not and see them through to the end.

We offer no-cost consultations to help you understand your rights and legal options. Call us at (949) 379-6250 to schedule your free consultation.

Are You Being Unfairly Compensated Because of Your Employee Status?

At your job, you can be classified as an employee or an independent contractor. How you are classified plays a significant role in the way you are compensated. An independent contractor is not considered a full-time employee and is therefore not entitled to the same benefits.

Employers have been able to get away with this by hiring people who are unaware of the difference between independent contractors and employees. Many people who qualify as employees have been intentionally misclassified so that the employer can benefit. Thankfully, you do have a way to fight back.

Am I an Employee or Independent Contractor?

Generally, an independent contractor is someone who works for themselves and offers services to businesses. Most freelancers are independent contractors. As an independent contractor, you are responsible for paying your employment taxes, purchasing medical insurance, and keeping track of your income so you can report it on your taxes. Independent contractors are usually not eligible for unemployment benefits.

An employee is someone who works directly for an employer and is told what work to do, when to do it, and how to do it. Your employer has the right to dictate the details of your job and terminate your employment if you deviate from their rules. In exchange, you are entitled to numerous benefits, including:

• Overtime pay
• Healthcare benefits
• Paid time off (PTO)
• Pension
• Safety equipment
• Job training

California’s Law on Independent Contractor Classification

California has passed multiple laws and regulations to prevent abuse and ensure workers are properly classified.

Assembly Bill 5 (AB 5)

Assembly Bill 5, effective January 1, 2020, expanded employee protections by narrowing the circumstances under which a worker can be labeled an independent contractor. AB 5 added Labor Code Section 2775, which assumes a worker is an employee unless proven otherwise. AB 5 also clarified how wage and hour laws, unemployment insurance, workers’ compensation, and other labor protections apply to California workers.

Labor Code Section 226.8

This section prohibits employers from willfully misclassifying workers as independent contractors. It imposes civil penalties ranging from $5,000 to $25,000 per violation. Employers may also face additional consequences, such as:

• Being required to display public notices of their violations
• Losing access to state contracts
• Being ordered to correct misclassification and pay back wages and penalties

Private Attorneys General Act (PAGA)

Under PAGA, workers may file civil penalties on behalf of themselves and other aggrieved employees when the state’s labor laws are violated. PAGA claims often include misclassification allegations and can lead to significant financial recovery.

California Unemployment Insurance Code (CUIC)

Misclassified workers are often denied unemployment benefits. However, under the CUIC, the Employment Development Department (EDD) can audit employers and demand back payments for unemployment insurance, disability insurance, and employment training taxes. Workers may also retroactively receive benefits once their status is corrected.

Workers’ Compensation and Labor Code Section 3700

Employers must carry workers’ compensation insurance for all employees. Misclassified contractors who suffer job-related injuries may be denied benefits. However, California law allows these workers to file claims and seek retroactive coverage if their classification was incorrect.

Requirements for Being an Employee in California

To be viewed as an employee, there needs to be an employer-employee relationship. There are several factors that courts weigh to determine whether a person is an employee or an independent contractor. The primary factor courts consider is whether the individual or company has the right to control the manner and means in which the worker performs his job. Other factors include:

• Whether the worker is involved in his own enterprise independent of that of the individual or company
• Whether the work performed by the worker is part of the regular business of the individual or company
• Whether the individual or company provides the worker with instruments and equipment necessary to perform the essential functions of the position
• How long the working relationship is expected to last
• How the worker is paid

There is a strong presumption that workers are employees, which means the individual or company has the heavy burden of establishing the above factors.

A big misnomer is you are an independent contractor if the individual or company tells you that you are. The fact a worker may be treated as an independent contractor is of no significance in determining employment status. Even if a worker receives an IRS Form 1099 from the individual or company, which form is usually provided to independent contractors, this does not confirm that a worker is an independent contractor.

Consequences of Employee Misclassification

Employee misclassification carries serious legal and financial consequences for both workers and employers in California. 

Consequences for Workers

Misclassified workers often lose access to basic workplace rights, including:

• Unpaid Wages: Misclassified workers are frequently denied overtime, minimum wage, and compensation for off-the-clock work.
• Missed Breaks: California law requires paid rest breaks and unpaid meal breaks. Misclassified workers may be owed break premiums.
• Lack of Benefits: Workers classified as independent contractors are not provided with benefits such as health insurance, paid sick leave, or vacation pay.
• No Workers’ Compensation: If a misclassified worker is injured on the job, they may be denied medical care and wage replacement benefits.
• Unemployment Insurance Denied: Workers who lose their jobs may not qualify for unemployment benefits through the Employment Development Department (EDD).
• Out-of-Pocket Expenses: Independent contractors pay for their own tools, supplies, and travel. Misclassified employees are entitled to reimbursement under California Labor Code Section 2802.

Consequences for Employers

California imposes strict penalties on employers who misclassify workers, including:

• Back Pay and Reimbursements: Employers must pay unpaid minimum wages, overtime, break premiums, and expense reimbursements.
• Civil Penalties: Under Labor Code Section 226.8, employers face penalties of $5,000 to $25,000 per violation for willful misclassification.
• Tax Liability: Employers may owe back taxes, including Social Security, Medicare, unemployment insurance, and state disability insurance.
• Workers’ Compensation Fines: Employers who fail to provide workers’ compensation coverage for misclassified workers face fines and liability for medical expenses.
• Lawsuits and Class Actions: Misclassified workers can file individual lawsuits or participate in class actions.
• Reputation Damage: Public lawsuits and enforcement actions can harm a company’s reputation, affecting business relationships and future contracts.

What Do I Do If I’ve Been Misclassified?

If you have been misclassified by your employer, you should reach out to our Orange County independent contractor misclassification attorneys. You could receive compensation for lost wages, overtime wages, attorney fees, benefits, and more. Compensation for your lost wages may also include interest.

There is no reason for an employer to misclassify you as an independent contractor. Contact Aegis Law Firm today and make sure you are getting paid what you are owed.