Improper classification refers to an employer’s practice of mischaracterizing a position as being either “exempt” or an independent contractor. Employers may think they can avoid paying the workers their proper pay (minimum wage and/or overtime pay) — and failure to pay minimum wage in Missouri is against the law. Second, the employer avoids paying the proper payroll taxes. Thirdly, the employer may save considerably on their worker’s compensation insurance and other expenses.
In addition to being cheated out of fair pay, workers who are misclassified as “independent contractors” are also frequently cheated out of employee benefits, such as health insurance, sick days, vacation days, ETO/PTO, etc. Those workers are also continually lied to and told that they’re not entitled to the protection of laws like the Family and Medical Leave Act, the Americans with Disabilities Act, and other similar laws. These companies also frequently claim that they don’t have to provide workers’ compensation benefits or unemployment insurance benefits. If you were “hired” by a company yet are being told you’re an independent contractor, contact Curran Law Firm.