Misclassification

Misclassification of workers occurs when an employer improperly classifies their employees as independent contractors so that they do not have to pay payroll taxes, minimum wage or overtime, or comply with other wage and hour law requirements such as providing meal periods and rest breaks. Misclassification, or labeling a worker as an independent contractor when they should be an employee, undermines businesses who play by the rules and basic worker protections like minimum wage, paid sick days, and the safety of workplaces. Additionally, the misclassified worker has no workers’ compensation coverage if injured on the job, no right to family leave, no unemployment insurance, no legal right to organize or join a union, and no protection against employer retaliation. This is a form of fraud.

• Learn more about the employment status of workers when they are claimed to be an independent contractor and not an employee.
• Report misclassification of an employee as an independent contractor.
• For misclassification affecting a group of employees within a business, contact the Bureau of Field Enforcement (BOFE).

Fraud Prevention

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