what kind of lawyer to use to sue previous employer classsifing me as independant contractor

by Demarco Pfannerstill 5 min read

If you believe you have been incorrectly classified as an independent contractor when you are really an employee, you should talk to an experienced employment lawyer.Dec 20, 2017

Full Answer

What kind of lawyer do I need to sue a contractor?

What Kind of Lawyer Do I Need to Sue a Contractor? The moment you sign a contract with someone, you are in fact entering into a business agreement with them. Thus, the most common type of lawyer used to sue a contractor is a business law attorney.

Are you eligible for an independent contractor misclassification lawsuit?

To be eligible for an independent contractor misclassification lawsuit, your (alleged) employer must consider you a contract worker even though the nature of your work characterizes you as an employee. The easiest way to tell if you are currently classified as an independent contractor is to check the tax form your employer gave you.

What can I do if my employer thinks I'm an independent contractor?

Talk to your Employer. First, you can try to talk to your employer to see if it will review your classification and reclassify you as an employee. Explain that you think you've been wrongly classified as an independent contractor. At the very least, you should get an explanation as to why they think you are a contractor, instead of an employee.

What to do if my employer classifies me as a contractor?

First, you can try to talk to your employer to see if it will review your classification and reclassify you as an employee. Explain that you think you've been wrongly classified as an independent contractor. At the very least, you should get an explanation as to why they think you are a contractor, instead of an employee. Get the IRS Involved.

What options do you have if you are misclassified as an independent contractor instead of an employee?

Get the IRS Involved. Workers who believe they have been misclassified as independent contractors may request that the IRS determine their employment status for federal tax purposes by filing form IRS Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.

What are the consequences of treating an employee as an independent contractor?

Criminal penalties of up to $1,000 per misclassified worker and one year in prison can be imposed as well. In addition, the person responsible for withholding taxes could also be held personally liable for any uncollected tax.

How do I report misclassification to the IRS?

Misclassified worker Workers who believe they have been improperly classified as independent contractors can use IRS Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report their share of uncollected Social Security and Medicare taxes due on their compensation.

What to do if your employer gives you a 1099?

Here are two ways you can handle this. 1) Discuss this employment arrangement with your employers and ask to be reimbursed for their share of your taxes, or to be put on payroll from now on. 2) File your tax return without using the Form 8919. Look for another job.

What does the IRS require to determine if a person is truly acting as an independent contractor and not an employee?

The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.

What does the IRS require to determine if a person is truly acting as an independent contractor and not an employee quizlet?

There must be a written contract in place. Contractors must have income tax withheld.

What classifies an employee as an independent contractor?

Independent contractors are self-employed (also known as a “business for self”), which means they can operate and work for several clients at a time. Companies often use independent contractors for services to avoid bringing employees on staff for short-term needs.

How many criteria does the IRS have to determine independent contractor status?

20 criteriaA worker does not have to meet all 20 criteria to qualify as an employee or independent contractor, and no single factor is decisive in determining a worker's status. The individual circumstances of each case determine the weight IRS assigns different factors.

Why does the IRS care about independent contractors?

Because employers effectively take care of an employee's tax computation, there is not much concern about potential tax evasion. But because independent contractors compute their own taxes and are able to deduct business expenses, the IRS must commit resources to audit their returns.

What if my employer gave me a 1099 instead of a W-2?

At tax time, employees should receive Form W-2 from their employer. If you've received a 1099 Form instead of an employee W-2, your company is treating you as a self-employed worker. This is also known as an independent contractor.

Can you convert an employee to an independent contractor?

A: It is possible to transition an employee to a contactor if the worker truly meets the legal tests for independent contractor status. What you need to watch out for is the possibility of a payroll tax audit or the potential for various benefit-related claims.

What is the IRS 20 point test for independent contractors?

What is the IRS 20-Factor Test? The IRS 20-Factor Test, commonly referred to as the “Right-to-Control Test,” is designed to evaluate who controls how the work is performed. According to the IRS's Common-Law Rules, a worker's status corresponds to the level of control and independence they have over their work.

What is the number to file a lawsuit against an employer for misclassifying employees as independent contractors?

Workers can take matters into their own hands by filing lawsuits to recover back pay and other benefits. Contact us for a free legal consultation. 855.300.4459. Breadcrumb.

How long can you sue an independent contractor?

These lawsuits usually have a 2-3 year time limit, so it’s important to get in touch with an employment lawyer right away to discuss your rights.

What are the two types of worker misclassification lawsuits?

Two types of worker misclassification lawsuits are possible: Individual lawsuits: Individual lawsuits are filed by a single plaintiff, for their own benefit, to address allegations of independent contractor misclassification. Class action lawsuits: A class action lawsuit is brought by one, two, or a small group of plaintiffs on behalf ...

Why do employers misclassify employees as contractors?

There is a simple reason why employers misclassify employees as contractors: It saves them money. The difference between a contractor and an employee often lies in a legal gray area. Not all independent contractors are misclassified.

Why do employers misclassify freelancers?

One of the reasons employers are able to get away with misclassifying employees as freelancers is that the distinction between the two worker types is often hazy. No single standard is used to determine whether a worker is the employee of a company or is in business for himself/herself.

What is class action lawsuit?

Class action lawsuits: A class action lawsuit is brought by one, two, or a small group of plaintiffs on behalf of other plaintiffs with a common employer to address claims of worker misclassification.

Is it bad to misclassify employees as independent contractors?

The misclassification of employees as independent contractors is a major concern for America’s workforce and its economy. Workers who are treated as contractors— but should be classified as employees —may be able to file a lawsuit against the company they work for and recover back pay and other benefits.

What happens if an employer misclassifies you as an independent contractor?

When an employer misclassifies you as an independent contractor, they effectively transfer business costs to you. Misclassified employees suffer denial of critical benefits and protections they are entitled to under California law.

Why is the distinction between employee and independent contractor important?

The distinction between employee and independent contractor matters because employees possess many protections and benefits that independent contractors do not. If you believe your employer misclassified your status, you may want to move forward with a suit against your employer for misclassification. What Is an Independent Contractor v.

How much is the penalty for misclassification in California?

Employers face penalties ranging from $5,000 to $15,000 for each violation of the statute. Additionally, California law may impose another $10,000 to $25,000 penalty if it’s determined that the employers engaged in a willful pattern or practice of misclassification of employees in California. If employees incurred expenses as independent ...

Does the AB5 test determine independent contractor status?

If you currently hold one of those positions, the AB5 test does not determine your independent contractor status. In these circumstances, the Borello test determines independent contractor status. The factors for the Borello test include the following:

Does California have independent contractors?

However, California law does not provide those rights to independent contractors. Independent contractors should have the advantage of increased freedom and control over their work. However, employee misclassification may occur if your employer limits your autonomy and asserts control over your work. It’s crucial to assert your rights ...

Can I work as an independent contractor in California?

Many people do legally work as independent contractors in California. Many characteristics of independent contractors include the freedom to work for the clients they choose, setting their hours, and determining how to complete the jobs for which they contract. However, even if an employer provides you with a 1099 and calls you an independent ...

Can an independent contractor be sued for a 1099?

However, even if an employer provides you with a 1099 and calls you an independent contractor, you may have grounds for an employee misclassification lawsuit if you are technically an employee. Independent contractors do not enjoy the same federal and state protections in California as employees. For example, California law entitles employees ...

Is it hard to be an independent contractor?

An independent contractor case is based upon some fairly discrete factual issues, such as the level of control your former employer had over you and your working hours. So, as cases go, it is not all that hard to do. Discrimination cases, for instance, tend to be much harder because you have to prove what someone is thinking...

Can you be a contractor if you were misclassified?

Whether you were misclassified as an independent contractor is a fact-based question that depends upon the level of control exercised over you by your employer. The more control that was placed on your working conditions, the more likely that a court will find that you should properly have been classified as an employee. If you are deemed to be an employee, you may be able to recover...

What happens if you are misclassified as an independent contractor?

Among other things, it means that you'll: have to pay all your Social Security and Medicare taxes out of your own pocket (employers must pay half of these taxes for employees, but not independent contractors.

What to do if you are injured on the job?

File a Workers' Comp Claim. If you've been injured on the job and your employer refuses or fails to provide you with workers' compensation coverage, you should file a claim with your state workers' compensation insurance agency.

How to file for unemployment if you were laid off?

File an Unemployment Insurance Claim. If you've been fired or laid off by your employer, file an employment insurance claim with your state unemployment agency. Explain that you've been misclassified as a contractor instead of an employee, and the agency will investigate. If it determines you should have been treated as an employee, ...

Do you have to give consent to a lawyer to text you?

You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary.

Do independent contractors have to pay Medicare?

Independent contractors have to pay all their Social Security and Medicare taxes themselves. In contrast, employees have half of these taxes paid by their employers. If you think you've been misclassified as a contractor, you can avoid having to pay more than half of these taxes yourself by filing IRS Form 8919, ...

What is contracting contractor?

By very definition, contractors work on a contractual basis. This means they agree to provide a specific service, product, or result in exchange for cash within a certain period of time. For example, a plumber might agree to replace all of the plumbing in your master bathroom within two weeks for $2,000. Or, a home renovation specialist might ...

What is the first step in contract law?

The most important first step you can take in any contract law claim is to consult with a lawyer. The best way to find the right type of lawyer, regardless of the exact facts associated with your case, is to contact a legal referral service.

What is breach of contract?

A breach of contract occurs when the contractor fails to hold up their end of the bargain. For example, a home reno contractor might miss a deadline, fail to deliver a completed product, or even display incompetence in providing a service.

What is fraudulent bill padding?

Fraudulent bill padding, such as when a contractor agrees to complete a job for one amount, yet starts tacking on dubious fees. While contracts can and often do change, any suspicious additions should be scrutinized closely.

What is defective work?

Defective work is any work that puts the home, the project, the homeowner, or the people who enjoy the results at risk in some way. This may lower the home’s overall value, put the client’s life at risk, or even create an environment that encourages dangerous accidents and/or structural failures.

Is a contract written in California binding?

While the “contract” involved should always lay out the rules for this exchange in writing, both verbal and written contracts are valid and legally binding in California. What this means is that, should a contractor fail to follow through on the agreement in some way, you have the right to sue them for compensation.

Is contract fraud common?

Fraud is far more common in contract law than you might think. Contractors don’t have to engage in outright scams or con artist tricks to be accused. In fact, the exact definition of contract fraud is surprisingly broad, and might include:

Why do contractors file lawsuits?

Some other causes for lawsuits against contractors include: The contractor completes the job but unsatisfactorily; The contractor completes the job but the work violates safety standards; The contractor took advantage of the homeowner, such as by accepting a deposit or payment but then failing to complete the agreed upon work; or. ...

What is a breach of contract lawsuit?

The most common are: Breach of Contract Claim: Breach of contract refers to one party failing to follow through with their side of a contract.

What is contract fraud?

Fraud Claim: contract fraud occurs when one party knowingly makes a false claim, intending to trick or deceive the other party into signing the contract. A homeowner may sue a contractor for fraud if they told the homeowner that the completed project would look one way, but the result is vastly different.

What is a contract for a contractor?

When hiring a contractor, such as for home repairs, most homeowners and contractors sign a legal contract that specifies the terms of the arrangement. This includes the work that is to be completed, the amount that is to be paid for the work completed, and a time frame that sets a deadline for the when is to be completed.

What are the different types of breach of contract?

There are four main types of breach under the breach of contract umbrella: Minor Breach: This occurs when a party fails to perform part of the contract, but does not violate the entire contract. This is sometimes referred to as an impartial breach;

Can you sue a contractor for breach of contract?

As can be seen, suing a contractor typically requires that you first prove there was a breach of contract, or at a minimum an agreement for services to be performed. Regardless of whether you have a written contract or not, suing a contractor is often a complicated and lengthy process. This is especially true since state laws vary.

Can you sue a contractor without a written contract?

The reason that you can still sue a contractor without a written contract is because you may argue that an implied or oral contract was formed. For example, if you hire a contractor to paint your whole house, but they only paint 80% of your house, you may be able to have a court enforce your oral contract by having the contractor partially refund ...