Being misclassified can cause hardship for workers. They could lose out on vital benefits and much more. It is also unlawful for employers to misclassify their employees, even if done unintentionally.
What does misclassification look like and why does it matter so much?
1. A lack of clarity
One common source of misclassification is not being clear about the precise role of the worker. A general rule is that if the employer has significant control over when the worker starts and how tasks are performed, then the worker is an employee. A worker may be an independent contractor if they have significant control over these areas.
It’s important to remember that what matters is the nature of the working relationship and not the job title.
2. It can be an avoidance tactic
Some employers purposely misclassify workers to cut costs. For instance, independent contractors are usually not entitled to health benefits, paid leave and insurance, which reduces the costs of the employer significantly.
It is rare for this type of misclassification to go unnoticed, and employers can face significant penalties for taking this approach. Employees are fully entitled to the benefits mentioned above.
Why does proper classification matter?
Workers need to be classified appropriately. If you have been misclassified, then you could be missing out on benefits that you are legally entitled to. For instance, you may be entitled to comprehensive health insurance, which matters if you are ever injured or fall ill.
Misclassification can either be deliberate or an honest mistake. If you want to learn more about your rights as a worker, it may be beneficial to seek legal guidance.