Misclassifying Non-Exempt Employees as Exempt and Independent Contractors
by Chris - Unemployment-Tips.com
Misclassifying employees as independent contractors and exempt employees is a non-compliance issue of importance as far as the United States Department of Labor is concerned.
They are encouraging workers to report if they believe their employer is violating the Fair Labor Standards Act.
Not only is misclassifying employees harmful to the individual, it's harmful to the unemployment insurance system that now must go after the employer who commits this type of fraud to avoid paying not only unemployment tax, but half of the employees social security tax, and any fringe benefits that may come with the job and the most egregious .. overtime wages.
But still, I talk to individuals who have been denied unemployment benefits .. because they didn't file a wage complaint.
If you believe your employer has misclassified you as an exempt employee, or an independent contractor (self employed) your first effort to preserve your employment is to use an employee right and file an official complaint .. or at least learn if you have been misclassified by your employer.