Your employer may call you an “independent contractor.” You may receive a 1099 instead of a W-2. You may even have signed an agreement saying you are a contractor. But what your employer calls you doesn’t necessarily determine your legal status, and misclassification can cost you money. When an employer improperly classifies an employee as an independent contractor, it may avoid paying overtime, minimum wages, and other compensation the worker is legally entitled to receive. You may also be denied workplace protections that come with being an employee. In other words, misclassification can be a form of wage theft, leaving you to work the same hours and perform the same job while receiving less pay and fewer protections than you should.
In Washington, whether someone is properly classified as an employee or an independent contractor depends on the facts of the working relationship and the applicable legal tests. Simply labeling someone a contractor does not make them one. Washington agencies recognize worker misclassification as a real problem, including situations where employees are incorrectly classified as independent contractors.
The James Hawkins Firm represents employees in Kent who believe they have been misclassified. For more than 25 years, we have stood up to employers and large companies when workers are denied the wages and protections they have earned. If you are being treated like an employee but paid like a contractor, you may be leaving wages on the table without even realizing it. It is worth finding out whether your employer has classified you correctly, and whether you are owed money as a result.
Employee misclassification happens when a worker who should legally be treated as an employee is instead classified as an independent contractor or placed in the wrong employment category. The difference can be significant. Employees may be entitled to protections involving minimum wage, overtime, paid sick leave, workers’ compensation, unemployment insurance, and other workplace rights. Independent contractors generally do not receive the same protections.
Misclassification can also lead to unpaid overtime and other wage problems. Washington’s overtime protections apply to most hourly, piece-rate, and commissioned employees, as well as some salaried employees. Being paid a salary does not automatically exempt you from overtime.
Being called an “independent contractor” does not automatically make you one. Washington looks at the actual working relationship, not simply the label your employer puts on your job. For wage-and-hour protections, Washington Labor & Industries considers factors such as how much control the company has over your work, whether you have an opportunity for profit or loss, and whether you are in business for yourself. Other circumstances show whether you are economically dependent on the company. Courts consider these factors together based on the specific facts of each situation.
In other words, the question is not simply what your employer calls you. The question is how your job actually works.
One important question is how much control the company has over you. Ask yourself:
The more control a company exercises over the details of your work, the more important that may be when determining whether you are truly an independent contractor.
A true independent contractor generally operates an independent business rather than simply working as an employee under a different title. Consider whether you:
If you depend primarily on one company for your income and that company controls the way you work, those facts may be important when evaluating your classification.
Misclassification can happen for different reasons. Sometimes an employer misunderstands the law. In other situations, a company may intentionally classify workers as contractors because doing so can reduce the costs and responsibilities associated with having employees. An employer that improperly classifies an employee as a contractor may avoid paying certain employment-related taxes and may attempt to avoid obligations involving overtime, minimum wage, unemployment insurance, workers’ compensation, and other employee protections. That does not mean every employer who uses independent contractors is doing something wrong. Independent contractors are legitimate in many industries and circumstances. The important question is whether your actual working relationship meets the legal requirements for independent-contractor status.
Misclassification is not always obvious. You may have been told from day one that you are a contractor and never questioned it. But consider how your work actually operates. You may want to talk with our team if:
No single factor necessarily decides the issue. The legal analysis depends on the applicable law and the actual circumstances of your work.
Being classified incorrectly can cost you far more than you might realize.
If you are actually an employee who is entitled to overtime, being treated as a contractor may allow an employer to avoid paying you for the extra hours you work. Washington generally requires eligible employees to receive at least 1.5 times their regular rate for hours worked over 40 in a workweek. Some salaried employees can also be entitled to overtime. If you regularly work 50, 60, or more hours a week and receive the same flat payment without overtime, ask whether you have been properly classified.
Misclassification can also affect your access to employee protections and benefits, including unemployment insurance, workers’ compensation, paid sick leave, and minimum wage protections. The consequences can become particularly serious when a worker loses their job and discovers that the company treated them as a contractor rather than an employee.
A misclassified worker may also end up paying business-related expenses or taxes that would ordinarily be handled differently if properly classified as an employee. The financial impact can continue for months or years. What looks like a small difference on your paycheck can add up to a significant amount over time.
Misclassification is not limited to one type of job or workplace in Kent. We see misclassification issues involving workers in transportation and trucking, delivery services, warehousing and logistics, manufacturing, construction and skilled trades, landscaping and maintenance, cleaning and janitorial services, retail, restaurants and hospitality, healthcare and home care, staffing and temporary work, technology and professional services, and gig and app-based work.
Misclassification cases often require looking beyond your job title or the paperwork you received when you were hired. We investigate how your job works day-to-day and compare the reality of your working relationship with Washington law requirements.
Depending on the circumstances, we may examine your employment or contractor agreement, how you are paid, whether you receive a W-2 or 1099, your work schedule, who controls your schedule, who assigns your work, and how closely your employer supervises you. We may also look at whether you can work for other companies, who provides your equipment and supplies, whether you operate an independent business, and what your actual job duties are. We can also review your time records, pay records, company policies, emails, text messages, and other communications. If you worked overtime, we will look at whether you were properly paid for those hours. And if other workers were classified the same way, we may investigate whether they experienced similar problems.
Our goal is to understand the reality of your working relationship, determine whether you were properly classified, and identify the wages and other compensation you may be entitled to recover. If the evidence supports a claim, we then work to build the strongest case possible and pursue what you are owed.
You do not have to figure out your employment classification on your own. If your employer calls you an independent contractor but your day-to-day work looks more like an employee’s job, it is worth finding out whether you have been properly classified and whether you are owed money as a result.
The James Hawkins Firm has represented employees for more than 25 years. We investigate the facts, look beyond job titles and paperwork, and work to build strong cases for workers who have been denied the wages and protections they deserve. We handle qualifying employment cases on a contingency fee basis, so you don’t have to pay an upfront attorney’s fee to have your situation evaluated. We also offer free consultations, allowing you to explain what is happening and learn about your options before deciding what to do next. You worked for those wages. Make sure you are getting the pay and protections you earned. Contact the James Hawkins Firm today for a free consultation.
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