Employee Misclassification Claims

Employee Misclassification Claims

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

Contact EAG

735 Tank Farm Road, Suite 130B
San Luis Obispo, CA 93401
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23832 Rockfield Blvd., Suite 260
Lake Forest, CA 92630
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(805) 782-9900

(805) 782-9901


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