Tuesday, March 19, 2013

Misclassification of Employees as Independent Contractors in Pennsylvania


What Does it Mean to Be Misclassified as an Independent Contractor?


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 Misclassified Workers
For many years, and with greatly increasing frequency since 2008, companies have purposefully classified workers who are in fact W-2 Employees ("True Employees") as W-9 Independent Contractors ("ICs").

This pervasive and deeply damaging practice, commonly referred to as "Misclassification,"
significantly undermines not only the American workforce, but our Social Security Fund, which has been greatly depleted because employers are not required to make SS contributions on behalf of Independent Contractors.

Click Here to read our comprehensive article on the factors and implications of Independent Contractor status under various laws. 

What Benefits Do I Lose if I am Misclassified as an Independent Contractor?

Here are benefits gained by Corporate America through Misclassification or, stated conversely, benefits lost by workers who are misclassified as ICs:



When Benefits Am I Losing Because I am an Independent Contractor

Employers of Independent Contractors DO NOT have to:

*  Obtain Workers' Compensation insurance for ICs; 

*  Provide perqs such as disability or life insurance to ICs;

*  Provide medical benefits to ICs;

*  Provide vacation pay, sick pay or paid leave to ICs;

*  Permit ICs to participate in 401k or pension plans maintained by the company;

Honor wage laws relating to payment of minimum wages, etc. ;


*  Pay ICs overtime;

*  Follow employment laws such as Title VII, FMLA, ADA, etc., which protect only employees;

*  Make tax payments to state, local or federal authorities for ICs;

*  Make contributions to Social Security on behalf of ICs;


*  Make contributions to state Unemployment funds for ICs; 

IRS Has Offered Amnesty to Employers Who Misclassify Workers as Independent Contractors

The Misclassification of "True Employees" as "Independent Contractors" is a scourge on America, and has been for many years.  Regrettably, Corporate America has since 2008 made a determined effort to require more and more unemployed, and quasi-desperate, workers to accept IC arrangements that, in the past, would have been W-2 jobs.

This has many nefarious consequences, not the least of which is that, in Pennsylvania, and in many other states, taking a job as an Independent Contractor disqualifies one from the right to receive unemployment compensation or workers' compensation benefits.     

The unlawful Misclassification of True Employees as Independent Contractors is so widespread, and so detrimental to the best interests of America, that the normally ruthless IRS has actually offered amnesty to employers who voluntarily acknowledge this practice

IRS Offering Amnesty to Companies That Wrongfully Misclassify Employees as Independent Contractors
Can I Sue if I Am Misclassified as an Independent Contractor?

Yes, we represent many misclassified workers in lawsuits seeking:

*  Overtime pay;

*  Benefits such as vacation pay, sick days, right to participate in 401(k) plans, etc.;

*  Compensation for unlawful employment actions under statutes such as Title VII, FMLA,    ADA, etc.;

*  Compensation due and owing under state and federal wage laws;

*  Benefits under employer insurance plans providing medical coverage, disability compensation, life insurance, etc.

In addition, we successfully represent many individuals who have been denied Unemployment Compensation because they have been misclassified as ICs

Usually, it is relatively easy for a qualified employment-law attorney to determine whether you have a solid Misclassification claim.  In some instances, you may have a basis for a Class Action.  But, even if you are alone in your plight we, and may other lawyers, handle Misclassification lawsuits on a contingent fee basis (no recovery, no fee). 

Philadelphia Area Employment Attorney Representing Employees

Employee Rights Lawyer Since 1991
John A. Gallagher is an employment lawyer who represents employees in Pennsylvania. 

John typically represents employees who need an employment lawyer in Philadelphia County, Chester County, Delaware County, Bucks County, Berks County, Lancaster County and Montgomery County.

Pennsylvania Employment Attorney Provides Free Telephone Consultations

If you are looking for an employment lawyer, and live in Malvern, Wayne, King of Prussia, Downingtown, Glenside, Doylestown, Radnor, Newtown Square, Exton, Philadelphia, West Chester, Skippack, Langhorne, Haverford, Nether Providence, Broomall, Drexel Hill, Reading or any of their surrounding towns, feel free to send me an e-mail or give me a call.  I am always glad to spend some time with people via a free telephone consultation.

Need an Employment Labor Lawyer Near Philadelphia?

Click Here if you have questions about any aspect of employment law, from wrongful termination, to wage and overtime claims, to discrimination and retaliation laws, to Family and Medical Leave

Click Here if you have questions about any aspect of Pennsylvania Unemployment Law, from willful misconduct, to voluntary quit, to Referee Hearings, to severance issues

Click Here to e-mail John directly.

Thanks for checking in with us.


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