If you’ve ever wondered why you don’t get overtime pay, why you don’t have mandatory meal or rest breaks or why you’re covering your own expenses without reimbursement, the problem might be that you’ve been misclassified as an independent contractor rather than as an employee. It’s a pretty common issue in California, and it helps to understand how the law works to protect your legal rights.
Many employees don’t realize their rights are being violated because the rules around classification can be confusing, and employers don’t always explain them clearly.
Start with the ABC test
California uses the “ABC test” to determine whether someone is an independent contractor. Here’s how it works:
- You must be free from the control and direction of the hiring entity in how you do your work.
- Your work must be outside the usual course of the company’s business.
- You must have an independently established trade, occupation or business.
You’re likely an employee if your work doesn’t check all three. It means you may be entitled to overtime, sick pay, unemployment insurance and more, even if you signed an agreement saying otherwise.
Watch for red flags
Misclassification isn’t always obvious, but paying attention to the details of how you do your job can help you spot the signs. Do you follow a fixed schedule set by someone else? Are you using tools and equipment provided by the company? Are other workers in a similar position getting benefits? If any of these applies to you, it could point to misclassification.
What can you do?
If something feels off, don’t ignore it. Start by documenting your duties and hours, then raise the issue with your employer. Sometimes, misclassification is unintentional, and speaking to your Human Resources department could clear the matter quickly.
Should your employer dismiss or ignore your concerns, seeking qualified guidance can help you understand your rights, evaluate your situation and guide you on the best course of action. Remember, misclassification isn’t just unfair. It’s illegal.