Misclassification of Employees as Independent Contractors in Pennsylvania

What Does it Mean to Be Misclassified as an Independent Contractor?

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 Misclassified Workers

For many years, and with greatly increasing frequency since 2008, companies have purposefully classified workers who are in fact W-2 Employees ("True Employees") as W-9 Independent Contractors ("ICs").  

This pervasive and deeply damaging practice, commonly referred to as "Misclassification," 
significantly undermines not only the American workforce, but our Social Security Fund, which has been greatly depleted because employers are not required to make SS contributions on behalf of Independent Contractors. 

Click Here to read our comprehensive article on the factors and implications of Independent Contractor status under various laws. 

What Benefits Do I Lose if I am Misclassified as an Independent Contractor?

Here are benefits gained by Corporate America through Misclassification or, stated conversely, benefits lost by workers who are misclassified as ICs:

Employers of Independent Contractors DO NOT have to:

*  Obtain Workers' Compensation insurance for ICs; 

*  Provide perqs such as disability or life insurance to ICs;

*  Provide medical benefits to ICs;

*  Provide vacation pay, sick pay or paid leave to ICs;

*  Permit ICs to participate in 401k or pension plans maintained by the company;

* Honor wage laws relating to payment of minimum wages, etc. ;

*  Pay ICs overtime;

*  Follow employment laws such as Title VII, FMLA, ADA, etc., which protect only employees;

*  Make tax payments to state, local or federal authorities for ICs;

*  Make contributions to Social Security on behalf of ICs;

*  Make contributions to state Unemployment funds for ICs; 

IRS Has Offered Amnesty to Employers Who Misclassify Workers as Independent Contractors

The Misclassification of "True Employees" as "Independent Contractors" is a scourge on America, and has been for many years.  Regrettably, Corporate America has since 2008 made a determined effort to require more and more unemployed, and quasi-desperate, workers to accept IC arrangements that, in the past, would have been W-2 jobs. 

This has many nefarious consequences, not the least of which is that, in Pennsylvania, and in many other states, taking a job as an Independent Contractor disqualifies one from the right to receive unemployment compensation or workers' compensation benefits.     

The unlawful Misclassification of True Employees as Independent Contractors is so widespread, and so detrimental to the best interests of America, that the normally ruthless IRS has actually offered amnesty to employers who voluntarily acknowledge this practice. 

Can I Sue if I Am Misclassified as an Independent Contractor?

Yes, we represent many misclassified workers in lawsuits seeking:

*  Overtime pay;

*  Benefits such as vacation pay, sick days, right to participate in 401(k) plans, etc.;

*  Compensation for unlawful employment actions under statutes such as Title VII, FMLA,    ADA, etc.;

*  Compensation due and owing under state and federal wage laws;

*  Benefits under employer insurance plans providing medical coverage, disability compensation, life insurance, etc.

In addition, we successfully represent many individuals who have been denied Unemployment Compensation because they have been misclassified as ICs. 

Usually, it is relatively easy for a qualified employment-law attorney to determine whether you have a solid Misclassification claim.  In some instances, you may have a basis for a Class Action.  But, even if you are alone in your plight we, and may other lawyers, handle Misclassification lawsuits on a contingent fee basis (no recovery, no fee). 

John A. Gallagher is an employment lawyer who represents employees in Pennsylvania. 

John also has referral arrangements with attorneys skilled in representing employees throughout the United States.  Click Here to request a referral.

Click Here if you have questions about any aspect of employment law, from wrongful termination, to wage and overtime claims, to discrimination and retaliation laws, to Family and Medical Leave…

Click Here if you have questions about any aspect of Pennsylvania Unemployment Law, from willful misconduct, to voluntary quit, to Referee Hearings, to severance issues…

Click Here to e-mail John directly.

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