As many sectors of business become increasingly decentralized, the practice of misclassifying workers as independent contractors has continued to worsen. This practice, whether intentional on the part of the employer or not, is harmful to not only the employee, but also to state and federal governments and to the business community as a whole.
It is plain to see how misclassification hurts a worker. For many workers, misclassification means that they are essentially given a pay cut and as they work harder to maintain their job and advance, they devalue their position for workers who are coming up behind them. Independent contractors face a higher tax burden than their traditional counterparts, because their employer is shifting part of the company’s tax burden onto the employee. In many cases, this plainly amounts to corporate bullying.
The government is also hurt by this practice because they are missing out on a great deal of tax income from employers who should rightly be paying it. Independent contractors are not guaranteed insurance coverage by their employees, and therefore a large portion of that cost passes on to the government to provide health services to underemployed independent contractors.
This practice also hurts the business world at large, creating an unfair competitive advantage for employers who are willing to mistreat their employees with misclassification. Those employers who have the integrity to treat their employees well and classify them properly often feel the need to compensate for the increased cost of maintaining those employees by either reducing costs in other areas, or possibly eliminating positions altogether.
Clearly, it is no small matter if you are being misclassified at work. If you are ready to see that you are treated fairly and given the respect of the full benefits and status that you deserve, the attorneys of the Zoldan Law Group are here to help you navigate this difficult field as you pursue justice.