Los Angeles Employee Misclassification Lawyers

Los Angeles employee rights regarding job misclassification are specifically protected under various state regulations. Los Angeles misclassification typically involves incorrectly designating workers as independent contractors instead of employees, which can deprive employees of crucial benefits and protections. California has been active in addressing this issue to ensure workers receive appropriate rights and benefits.

If you believe your employer wrongly classified you as an independent contractor, contact Matern Law Group’s Los Angeles job misclassification lawyers at 310-987-4226 for a free consultation.

Key points about California’s stance on job misclassification

1. Assembly Bill 5 (AB 5) – The “Gig Worker Bill”: Implemented in January 2020, AB 5 codifies the “ABC test” originally adopted by the California Supreme Court through its decision in Dynamex Operations West, Inc. v. Superior Court. Under the ABC test, a worker is considered an employee and not an independent contractor unless the hiring entity satisfies all three of these conditions:
   1. The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
   2. The worker performs work that is outside the usual course of the hiring entity’s business; and 
   3. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.
2. Exemptions and Modifications: Various professions and industries, such as doctors, lawyers, accountants, real estate agents, and certain technology services, are exempt from AB 5. For these exceptions, the “Borello test” may still apply, which considers multiple factors primarily focusing on the control a company has over the worker.
3. Enforcement and Penalties: California vigorously enforces its misclassification laws. Los Angeles employers who misclassify workers as independent contractors can face significant penalties, including fines, back payment of wages, taxes owed, and benefits such as health insurance that would have been provided had the worker been correctly classified.
4. Proposition 22: Passed in November 2020, this measure allowed app-based transportation and delivery companies to classify their Los Angeles drivers as independent contractors, with some benefits, despite AB 5. However, it is subject to ongoing legal challenges and debates.

These regulations underscore California’s commitment to ensuring that Los Angeles workers are fairly classified, thereby granting them appropriate labor protections and benefits, such as minimum wage, overtime pay, unemployment insurance, and workers’ compensation. Los Angeles misclassification can lead to severe legal and financial consequences for employers, highlighting the importance of adherence to these rules.

How Does California’s ABC Test Determine Employee Misclassification?

California law generally presumes that a worker is an employee rather than an independent contractor for purposes covered by the ABC test unless the hiring entity can establish otherwise. Under California Labor Code Section 2775, which incorporates the ABC test established through AB 5, the hiring entity generally must prove all three of the following:

• A — Free From Control: The worker is free from the hiring entity’s control and direction in performing the work, both under the contract and in practice.

• B — Outside the Usual Course of Business: The worker performs work that is outside the usual course of the hiring entity’s business.

• C — Independently Established Business: The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work being performed.

Simply calling someone an “independent contractor,” paying them on a 1099, or having them sign an independent contractor agreement does not necessarily determine their legal status. The actual working relationship matters.

A Los Angeles worker who is improperly classified as an independent contractor may have been denied important protections available to employees. Depending on the circumstances, a misclassified worker could potentially recover unpaid overtime, compensation associated with noncompliant meal or rest periods, and reimbursement for qualifying business expenses that should have been paid by the employer under California Labor Code Section 2802.

California law also contains exemptions and exceptions to the ABC test for certain occupations and business relationships. When an exception applies, a different legal standard may determine whether the worker is an employee or independent contractor.

Independent Contractor vs. Exempt Employee Misclassification

Employee misclassification does not only involve workers who are incorrectly labeled as independent contractors. Employers can also misclassify employees as exempt from California’s overtime and other wage-and-hour requirements.

For example, an employer might give a worker a title such as “manager,” “supervisor,” or “administrator” or place the employee on salary and treat that worker as exempt. A job title or salary alone, however, does not establish that an employee qualifies for an exemption.

California’s executive, administrative, and professional exemptions have specific requirements. Whether an employee qualifies generally depends on factors including the employee’s actual day-to-day duties, the amount of time spent performing exempt work, the employee’s authority and level of independent judgment where applicable, and whether the applicable salary requirements are satisfied.

As a result, a salaried Los Angeles employee may still be entitled to overtime. If your employer calls you a manager but most of your time is spent performing the same nonexempt work as hourly employees, for example, your actual duties may raise questions about whether you have been properly classified.

An employee misclassification lawyer in Los Angeles can examine what you actually do at work rather than relying solely on the title or classification your employer has assigned to you.

What Can You Recover for Employee Misclassification in California?

Misclassification can deprive employees of wages and other protections they would have received if they had been classified correctly. The remedies available depend on the type of misclassification and the underlying California Labor Code violations.

Depending on the circumstances, a misclassified employee may potentially be entitled to:

• Unpaid Overtime: Back pay for overtime hours that should have been compensated at the applicable overtime rate.

• Meal and Rest Period Premiums: Additional compensation that may be available when an employee was not provided legally compliant meal or rest periods.

• Business Expense Reimbursement: Reimbursement for qualifying expenses the employee was required to incur in performing their job.

• Waiting-Time Penalties: Certain former employees may qualify for penalties when an employer willfully fails to timely pay all wages due at the end of employment.

• Other Statutory Remedies: Additional damages, interest, attorney’s fees, or penalties may be available depending on the underlying violations.

• PAGA Civil Penalties: In appropriate cases, an aggrieved employee may be able to pursue civil penalties under California’s Private Attorneys General Act (PAGA), subject to PAGA’s procedural and statutory requirements.

Not every misclassification case results in every type of recovery. The amount potentially owed depends on factors such as how the worker was misclassified, how long the violations continued, the employee’s hours and rate of pay, and which wage-and-hour protections were denied.

How Matern Law Group Helps Misclassified Workers

Misclassification may violate California law when an employer wrongly treats a worker as an independent contractor instead of an employee. Our team of Los Angeles wage and hour lawyers represents misclassified workers and helps hold employers accountable for wage violations. We work to recover the compensation, benefits, and protections workers may be owed.

You may have a misclassification claim if your employer controls when, where, or how you work, your job duties are central to the company’s business, you do not operate an independent business, or you are denied overtime, meal and rest breaks, business-related reimbursements, or other employee protections. You may also have a claim if you are treated like an employee but paid as an independent contractor.

What We Do

Our legal team analyzes your daily job duties and operational constraints against California’s strict “ABC” and “Borello” tests, as applicable, to determine the true nature of your employment status. Our job misclassification attorneys calculate all unpaid wages, overtime, benefits, and tax contributions your employer should have covered. We fight to recover every dollar you’re owed whether your case requires negotiation or litigation.

Our Process

Our strategy begins with a comprehensive, confidential case assessment to evaluate your legal options and initiate a targeted investigation. We manage the burden of auditing your workplace responsibilities and comparing your operational treatment to that of W-2 employees. 

Once a clear pattern of misclassification is established, we present a detailed, evidence-backed demand package to your employer. While many corporate defendants choose to settle at this stage to avoid public exposure, our attorneys prepare every case for the courtroom to ensure you maintain maximum leverage.

What to Expect

Our Los Angeles job misclassification lawyers will provide regular updates throughout your case and handle all legal filings, negotiations, and court representation. When we successfully recover your misclassified wages, overtime, and damages, you can move forward knowing your professional rights have been fully validated and restored.