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Money Damages For Employee Misclassification in California

5/24/2023

 
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​Daniel Chammas is an experienced attorney who has worked for several firms in Los Angeles. Leveraging his significant legal experience, Daniel Chammas is an attorney at Ford & Harrison, LLP, in Los Angeles. He concentrates his practice on high-stakes cases involving off-the-clock violations, missed breaks, and employee misclassification.

Employee misclassification is a labor violation in California that happens when an employer abusively classifies a worker as an independent contractor when the worker is actually an employee and consequently deprives the worker of employee protections, such as paid sick leave, the minimum wage, and overtime. When an employee sues an employer for misclassification, they may be eligible for compensation for the loss due to the misclassification.

California's labor laws also penalize employers for any additional compensation deduction due to misclassification. For example, the state proscribes an employer from deducting a misclassified employee's compensation for employer materials, equipment maintenance, government licenses, space rentals, and services during the period of misclassification. The employee is liable for reimbursing the misclassified employee for these violations.

The conditions for classifying an individual as an employee may vary depending on the occupation, certification, and other factors. Often, an individual is an employee unless their hirer establishes conditions, including freedom from the hirer's direction or control, freedom to engage in a different business that is essentially the hirer's competitor, and freedom to work outside the hirer's business environment. Again, these conditions only apply to certain occupations. Real estate appraisers, home inspectors, freelance writers and editors, security brokers, licensed lawyers, and licensed doctors are not classified based on these conditions.

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