According to the Internal Revenue Service (IRS), millions of workers in the United States get misclassified as independent contractors by their employers. They do so to dodge federal and state employment tax payments and lower their labor expenditures.
Make no mistake — workers suffer real harm from intentional misclassification, as the nation’s labor leaders always stated.
When workers get misclassified as independent contractors, they get none of the workplace protections other employees enjoy, including:
There are also other ramifications to municipal, state and federal government entities due to the loss of revenue from taxes.
True independent contractors have near-total control over their work process. They can enter into agreements with employers but are not subject to a company’s control.
It can be challenging to identify a worker’s true status with a company. But the IRS developed a test with factors that determine that status for most workers. To wit:
Determining the answers to these and other questions can help ascertain worker misclassification is taking place on your job.