Employers may be Unlawfully Misclassifying Employees
Shub & Johns LLC launches investigation into companies that potentially violate state labor and benefits laws by misclassifying workers. Some companies may be purposely and/or negligently misclassifying workers for the benefit of the company. A recent amendment to New Jersey State law increases the penalties for these violations, among other things.
If you believe you have been misclassified by an employer, fill out the form to get in touch with Shub & Johns today!
Labor & Employment Laws
State laws addressing the misclassification of employees are designed to ensure fair treatment and proper categorization of workers by their employers. While misclassification can be accidental or the product of misunderstanding and human error, these misclassifications can also be done on purpose. Misclassification occurs when an employer labels a worker as an independent contractor rather than an employee, often to avoid providing benefits, such as overtime pay, minimum wage, or workers’ compensation. Many states have enacted laws to crack down on such misclassification practices, as they can lead to exploitation and unfair labor practices.
In 2021, some states like New Jersey amended these laws to increase the penalties potentially placed on entities with unlawful employment practices concerning misclassification.
Companies can label workers as “independent contractors” to avoid paying benefits or reduce compensation. A company that employs a large quantity of workers with direct supervision by an employed manager, who perform the same tasks and are in line with the trade or course of business of the company may not actually be “independent contractors” but full fledged “employees” instead.
Misclassification of employees can put save a company money while having their misclassified employees receive smaller wages, less benefits, and in some cases have them cover the price of out-of-pocket expenses while working on a company project.
Have you been misclassified by an employer? Let us know! Fill out the attached form and joint the Shub & Johns investigation today.