Companies Violate Rights of Independent Contractors
Loss of fair compensation, benefits, and protections on the rise
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Independent contractors work in numerous industries including trucking, construction, delivery, childcare, janitorial services, agriculture and more. Many nuanced factors separate independent contractors from employees, but in broad strokes, independent contractors enter into reciprocally-binding agreements with employers and exercise autonomy over how and when services are rendered. Their participation in employment directly impacts their earnings.
Independent contracting is a rapidly growing industry, increasing by almost 40% from 2005 to 2015. Unfortunately, some employers have taken advantage of this trend, intentionally misclassifying employees as independent contractors in order to reap benefits for their businesses.
Employers Gain from Misclassifying Independent Contractors
By labeling their employees as independent contractors, employers increase their profits. They do not have to pay Social Security, unemployment insurance, or workers’ compensation premiums for these workers, and they save on income and Medicare taxes. According to The Department for Professional Employees, AFL-CIO 2016 Fact Sheet, these benefits reduce employers’ labor costs by 20 to 40 percent. Employers of independent contractors do not have to offer a minimum wage or provide many of the workplace protections mandated for employees.
Misclassifying Employees: How Independent Contractors Pay the Price
- Not guaranteed minimum wage, overtime, breaks, paid time off and other labor standards
- No access to employer health care and pension plans
- Increased tax contribution; they pay both the employer and employee shares of state and federal payroll taxes
- Vulnerable to exploitation because their status allows employers to effectively bypass civil rights and labor law protections
- No recourse for unfair firing
Have your rights as an independent contractor been violated?
Our attorneys are investigating claims from employees who have been misclassified as independent contractors. If you or a loved one have been treated unfairly as an independent contractor, contact the attorneys at Aylstock, Witkin, Kreis & Overholtz today for a free consultation. There is never a fee unless we recover for you.
Aylstock, Witkin, Kreis & Overholtz is a national law firm geared towards protecting the rights of consumers who are seriously injured as a result of defective products, defective medical devices, accidents, or other negligent behavior.
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