How Do I Know If I Was Misclassified as an Independent Contractor?

Worker misclassification is a serious issue in California and can lead to workers being denied important protections and benefits they are legally entitled to. If you believe you were wrongly treated as an independent contractor instead of an employee, you may be entitled to back wages, overtime, and other compensation. Understanding the legal framework in California, especially the ABC test, is essential to identifying whether you were misclassified.

This guide will help you recognize signs of misclassification, understand how the ABC test works, and explain how to file a claim if you suspect you have been misclassified under California law.

Signs You May Be Misclassified

Independent contractors operate as their own business and generally have more control over how they work, but some workers labeled as contractors are effectively treated like employees. If any of these apply to your job, you may have been misclassified:

• You are required to follow a set work schedule determined by your employer.
• You are supervised or directed in how to perform your job duties.
• You are provided with tools, equipment, or a uniform from the company.
• You can’t contract with other companies or are required to work exclusively for one company.
• You have worked for the company for an extended period and perform functions similar to employees.
• You are not operating a business of your own and have not made a significant investment in your work setup.

These signs could suggest you are functioning as an employee under California law, even if your employer has classified you as an independent contractor.

The ABC Test: California’s Employee vs. Contractor Standard

In California, the ABC test is used to determine whether a worker is an employee or an independent contractor. This test was adopted following the California Supreme Court’s 2018 decision in Dynamex Operations West, Inc. v. Superior Court and later codified into law under AB 5 and Labor Code Section 2775.

Under the ABC test, a worker is considered an employee unless the hiring entity proves all three of the following:

1. Control (A): The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract and in fact.
2. Business Type (B): The worker performs work that is outside the usual course of the hiring entity’s business.
3. Independent Trade (C): The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

If the employer cannot establish all three prongs of the ABC test, the worker is presumed to be an employee. This legal presumption provides strong protection for workers in California.

Why Employers Misclassify Workers

Employers sometimes misclassify workers as independent contractors to reduce their own costs. Misclassification can allow employers to avoid:

• Paying overtime wages
• Providing meal and rest breaks
• Offering health benefits
• Contributing to unemployment insurance and workers’ compensation
• Paying the employer portion of payroll taxes

While this may benefit the employer financially, it can seriously disadvantage workers who are stripped of their employee rights and protections under California labor laws.

How to File a Misclassification Claim

If you believe you have been misclassified, you have the right to take legal action. Here are the basic steps you can take:

1. Review your employment situation under the ABC test to determine whether you were truly an employee.
2. Gather documents such as contracts, communications, time records, and pay stubs to support your claim.
3. You may file a wage claim with the California Labor Commissioner’s Office (DLSE) or pursue a civil lawsuit for misclassification.
4. Work with an experienced California employment law attorney who can help guide the process and help you recover damages.

Damages available in a misclassification claim may include unpaid overtime, meal and rest break violations, penalties, and reimbursement for business expenses.

For more information on misclassification and how Miracle Mile Law Group can help, visit our dedicated page: Misclassification Claims in California.

Contact Miracle Mile Law Group for Help

If you suspect you’ve been misclassified as an independent contractor in California, you should speak with an attorney as soon as possible. At Miracle Mile Law Group, we focus exclusively on employment law cases and are committed to protecting workers’ rights. Our experienced legal team will evaluate your case and fight to get you the compensation you are legally entitled to under California law.

Call us today for a free consultation or visit our website to learn more about your rights.