Employee Misclassification: Have You Been Misclassified?

While being classified as a manager, director, administrator, or professional may appear to be a step up, there are some cases when a company could be violating the rights of an employee. Since executives and managers are not allowed to collect overtime pay, some companies classify hourly employees as part of the management team as a tactical move. In this particular overtime scam, employees are promoted in name only, and are not given the responsibilities of the position they are elevated to or the benefits entitled to an employee in that position. 

To avoid being a victim of misclassification, employees should know what is usually required of their position. If an employee is labeled as an executive, manager, administrator, or any other similar terms, the employee should perform certain functions and receive certain benefits. Executives receive a salary, can hire and fire employees, have management as their primary task, and direct two or more full-time workers. Managers or administrators usually receive a salary, perform non-manual work, and have the primary duty of making independent judgment on matters of significance. Professionals customarily receive a salary, work in a field that is artistic or creative, and are in a profession which requires specialized intellectual instruction to enter.

Employee misclassification can also take the form of an employer labeling someone as an “independent contractor.” In this case, the worker may be wrongly denied benefits reserved for company employees, including health insurance coverage, pension plans, wages, and the protection of certain laws designed to protect employees. An employee is considered a worker that has the “right to control” what needs to be done and how it should be done. Conversely, independent contractors are told what task needs to be done and only determine how the task should be completed. 

Misclassified employees are often denied both overtime and benefits associated with the position under which they should be classified. If you believe that you have been misclassified by your employer, you may be eligible to receive compensation for your losses. Contact an experienced overtime lawyer through the free evaluation form to pursue justice and rectify your situation. The Fair Labor Standards Act prohibits employers from taking adverse action against any employee who files a complaint regarding overtime violations or participates in an investigation initiated by the Department of Labor.