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Independent Contractor vs. Employee - What's the Difference?

Independent Contractor vs. Employee
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Are you confused about whether you are an independent contractor or an employee?

Don't worry, you're not alone. Many people find it difficult to distinguish between the two, but it's important to understand the differences as it can have significant implications. At Arshakyan Law Firm, we specialize in employment law and can help clarify your status. Contact us today to discuss your situation with an employment attorney in Los Angeles.

Why Employee Classification Matters

Employee classification is a crucial aspect of the working relationship between an individual and a company. It determines the rights, benefits, and protections that the individual is entitled to under the law. The classification also affects the employer's obligations, which include:

Misclassification occurs when an employer categorizes a worker as an independent contractor instead of an employee, denying them these important rights and protections. This can lead to financial loss, lack of job security, and limited access to benefits such as healthcare, retirement plans, and paid time off.

The ABC Test

To address misclassification issues, California uses the ABC test to determine if a worker should be classified as an independent contractor or an employee. Under the ABC test, a worker is considered an employee and not an independent contractor, unless the hiring entity satisfies all three of the following conditions:

  1. Freedom to work independently: The worker controls how they complete their work without the hiring company directing or supervising them.
  2. Different line of work: The worker's services are not part of the main business activities of the hiring company.
  3. Established independent business: The worker runs their own business offering the same type of services they're providing to the hiring company.

If any of these conditions isn't met, the worker should likely be classified as an employee rather than an independent contractor.

It is important to note that satisfying only one or two of these conditions is insufficient to establish the worker as an independent contractor. All three conditions must be met to legally classify a worker as an independent contractor.

What to Do if You Think Your Employer Has Misclassified You

If you believe your employer has wrongly classified you as an independent contractor instead of an employee, taking action is essential to protect your rights.

Educate yourself first by learning about the ABC test criteria and seeing how your work situation compares. This will help you understand if you're truly an independent contractor or should be classified as an employee.

Next, collect evidence, including your contract, pay records, communications with your employer, and any documents showing how much control they have over your work. This documentation will strengthen your case.

When you're ready, consult an Employment Attorney who specializes in worker classification issues. They'll evaluate your situation, advise you on your options, and help you stand up for your rights.

If talking with your employer doesn't resolve the issue, you may need to file a complaint with the appropriate government agency. Your attorney can guide you through this process and help you navigate the legal system effectively. Remember that working with an employment law specialist gives you the best chance of successfully addressing your misclassification.

How a Los Angeles Employment Lawyer Can Help You

If you suspect that your employer has misclassified you as an independent contractor, it is important to consult with an experienced Los Angeles employment attorney who can help protect your rights and interests. A skilled attorney can:

  • Evaluate your case - Analyze the facts and circumstances of your employment to determine if you have been misclassified and have a valid claim.
  • Gather evidence - Assist you in collecting the necessary documentation to support your case, such as contracts, work records, and any other relevant information.
  • Negotiate on your behalf - Engage in negotiations with your employer or their legal representatives to seek a fair resolution.
  • Advocate in court - If necessary, represent you in court and present your case before a judge or jury to ensure your rights are protected.
  • Provide guidance - Offer legal advice and guidance throughout the process, explaining your rights and options, and helping you make informed decisions.

Taking action against misclassification is not just about securing immediate benefits—it's about establishing your proper employment status and accessing all the protections you deserve under the law. If you believe you've been wrongly classified as an independent contractor, don't wait to seek help.

An experienced employment attorney can be your strongest advocate, ensuring your rights are protected while helping you recover any benefits, wages, or protections you may have been denied. Remember that misclassification cases are time-sensitive, and delaying action could affect your ability to claim what you're rightfully owed. By taking steps now, you're not only standing up for yourself but potentially helping others in similar situations within your workplace.

Potential Remedies for Employee Misclassification

If you've been misclassified as an independent contractor, several remedies may be available to you. These can include back payment of wages, including overtime pay that you would have received as an employee. You may also be entitled to reimbursement for business expenses that should have been covered by your employer, such as equipment costs, travel expenses, or office supplies.

Additionally, misclassified workers can often recover unpaid benefits, including health insurance, retirement contributions, and paid time off. Damages for missed meal and rest breaks that employees are legally entitled to may also be recoverable.

In cases where misclassification was willful, you might be eligible for additional penalties against the employer. Furthermore, successful claims typically result in proper reclassification, ensuring you receive appropriate protections moving forward, including unemployment insurance, workers' compensation coverage, and workplace rights afforded to employees under state and federal laws.

Call a Los Angeles Employment Attorney Today

If you believe that you have been misclassified as an independent contractor and are seeking legal representation, call the Arshakyan Law Firm at 888-851-5005 or contact us online. Our team of experienced Los Angeles employment attorneys can determine whether your employer misclassified you and fight for your rights. Don't wait any longer, reach out to us today and take control of your employment status.

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