Employers can misclassify employees as “independent contractors” in many ways, and oftentimes label certain employees incorrectly in order to save on payroll costs. Many times, the employer is not intentionally trying to break the law, but there are employers out there who are aware of what they are doing. Marlton employment lawyers state that misclassification of employees as independent contractors is harmful to individuals and to the economy.
The Wage and Hour Division and the IRS has entered into partnerships with 35 states in order to crack down on the mislabeling of employees. The Occupational Safety and Health Administration, Office of Federal Contract Compliance Programs, and the Office of the Solicitor have also offered to help. Last year, the Wage and Hour Division investigations resulted in almost $75 million in back wages for over 100,000 employees who had been misclassified.
Options for Misclassified Employees in New Jersey
There are several options that employees can take if they believe they have been misclassified and their employer is unwilling to correct the issue. Because employers do not provide unemployment insurance or Workers’ Compensation coverage for independent contractors, and they also leave employees with large tax bills that should have been partially paid by employer withholdings, this is a serious issue that should be addressed and resolved as quickly as possible.
Contacting a state department of revenue and labor to report suspected misclassification is one step that an employee can take to launch an investigation. In many states, these claims can be filed anonymously. Another great resource for misclassified employees, particularly those who have been paid less than the minimum wage or have not been paid overtime, is the United States Department of Labor Wage and Hour Division, which handles those violations. Because tax fraud issues often arise with employee misclassification, the IRS Form 3949-A can be filed anonymously, and the SS-8 can be filed on behalf of the employee to determine worker status.
Marlton Employment Lawyers at McOmber McOmber & Luber, P.C. Advocate for Misclassified Employees
It is important to receive a fair day’s pay for a fair day’s work. If you believe you have been a victim of employee misclassification, the Marlton employment lawyers at McOmber McOmber & Luber, P.C.. can help you. We have years of experience handling employment law and employee misclassification situations. To schedule a consultation and discuss your employment misclassification situation, call our Red Bank, New Jersey offices at 732-842-6500 or our Marlton, New Jersey offices at 856-985-9800. You can also contact us online.