Employee Misclassification Claims in California

In California, workers are entitled to various protections under state and federal labor laws, including overtime pay, meal and rest breaks, and minimum wage. However, employers sometimes misclassify workers to avoid providing these benefits. Employee misclassification occurs when an employer incorrectly classifies a worker as exempt or as an independent contractor, thus denying them their rightful benefits and protections.

If you believe that you have been misclassified in your job, you may be entitled to back pay, penalties, and other compensation. At LCK Law, we are committed to helping workers who have been misclassified. We can assist you in recovering the wages and benefits that you are legally owed and ensure that your rights are protected under California law.

Exempt vs. Non-Exempt Employee Misclassification

Under California law, employees are either exempt or non-exempt. This classification determines whether an employee is entitled to overtime pay, meal and rest breaks, and other rights under the law.

  1. Non-Exempt Employees:
Non-exempt employees are entitled to overtime pay, meal and rest breaks, and other protections under California labor law. These employees must be paid overtime at 1.5 times their regular rate of pay for any hours worked beyond 8 hours in a workday or 40 hours in a workweek. Additionally, they are entitled to breaks during the workday and other labor protections.
Common Misclassification of Non-Exempt Employees as Exempt:
    • Employers may wrongfully classify non-exempt employees as exempt to avoid paying overtime wages.
    • This is often seen with employees in administrative, professional, or supervisory roles who may not meet the specific job duties tests for exemption under California law.
    • Salary-based misclassification: Some employers may incorrectly classify salaried employees as exempt, even if their job duties do not meet the criteria for exemption.
  2. Exempt Employees:
Exempt employees are not entitled to overtime pay and may not be entitled to meal and rest breaks. However, to be classified as exempt, employees must meet certain criteria, including:
    • Performing high-level duties (executive, administrative, professional, etc.)
    • Earning a salary above a certain monetary threshold
    • The employee’s duties must fall under specific exempt categories set by California law
  3. Common Exempt vs. Non-Exempt Misclassifications:
    • Employees in roles like managers, supervisors, and executive assistants may be misclassified as exempt if their job duties do not meet the legal definition for exemption.
    • Employers may wrongly classify workers as exempt to avoid paying overtime or providing meal and rest breaks.
    • Salary-based misclassification: Some workers are paid a salary but do not meet the criteria for being exempt from overtime pay.

Employee vs. Independent Contractor Misclassification

Another common form of employee misclassification occurs when workers are wrongly classified as independent contractors instead of employees. This misclassification often deprives workers of important rights and protections, including:

  • Overtime pay
  • Minimum wage protections
  • Health benefits
  • Unemployment insurance and workers’ compensation

California law has strict rules to determine whether a worker is an employee or an independent contractor. The ABC Test, which was established by the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court, applies to most workers and presumes that workers are employees unless the employer can prove the following:

  1. The worker is free from the control and direction of the hiring entity in performing the work, both under the contract for the performance of the work and in fact.
  2. The worker performs work outside the usual course of the hiring entity’s business.
  3. The worker is customarily engaged in an independently established trade, occupation, or business.

Common Signs of Independent Contractor Misclassification:

  • Employers often treat workers as independent contractors by requiring them to sign independent contractor agreements or 1099 forms, even though they function as employees.
  • Misclassified workers are often denied basic labor rights, such as overtime, meal breaks, and access to benefits.
  • Independent contractors are typically required to work exclusively for one company, use the company’s equipment, and follow company rules—criteria that suggest employee status, not contractor status.

How We Can Help

At LCK Law, we understand the significant impact that misclassification can have on your wages and benefits. Whether you’ve been misclassified as exempt from overtime or as an independent contractor, our firm can help you pursue justice and recover what you are owed.

We can assist you by:

  • Investigating your job duties and pay records to determine if you’ve been misclassified as exempt or an independent contractor
  • Reviewing your work relationship to assess whether you should have been classified as an employee rather than an independent contractor
  • Seeking damages for the financial losses caused by the misclassification, including back pay, penalties, and interest

Misclassification claims can be complex, but you have the right to be compensated fairly for your work. If you believe you’ve been wrongly classified, we are here to help you take action and ensure that your rights are protected under California law.

Contact LCK Law today for a confidential consultation. Let us help you recover the wages and benefits you deserve.