Employee Misclassification Claims

Employee misclassification can lead to serious legal and financial risks for businesses, especially under California’s strict labor laws. Whether it’s misclassifying workers as independent contractors or exempt employees, companies must navigate complex regulations to stay compliant. EAG Law Group defends employers against misclassification claims and audits, helping businesses avoid costly penalties and legal disputes.

Whether it’s misclassifying workers as independent contractors or exempt employees, companies must navigate complex regulations to stay compliant. EAG Law Group defends employers against misclassification claims and audits, helping businesses avoid costly penalties and legal disputes.

Misclassification of employees can take two forms, each carrying a potentially broad variety of liability.

Sadly, long-held misconceptions about the proper classification of individuals who perform personal services for a business have led many companies to honestly, but complacently, adopt practices that may now carry serious legal risk and liability in the current business environment.

Mistakenly misclassifying employees as overtime exempt is a relatively common claim in current wage-hour litigation. Even highly paid employees who receive a salary, or who manage or supervise other workforce members, may be entitled to overtime pay, rest breaks, and meal periods required for hourly non-exempt employees under California law.

Mistakenly misclassifying a personal service provider as a non-employee independent contractor or 1099 “consultant” is another common misstep. Under California’s AB5 legislation, the burden for establishing that an individual was properly classified as an independent contractor is now very stringent.

EAG defends businesses in every type of misclassification claims:

• Wage-hour claims
• Workers’ compensation insurance audits
• Labor Commissioner or Department of Labor audits
• EDD audits
• Labor Code section 226.8 claims