Preventing Worker Misclassification Claims 

 Posted on February 28, 2025 in English

Workers are either classified as employees or independent contractors under the law, and their rights and protections vary significantly based on whether they are treated as one or the other. Employers must classify workers correctly to avoid legal action potentially arising from disputes with independent contractors who may claim they were incorrectly classified. An experienced Falls Church, VA wage claim defense attorney can advise your business on the best practices to prevent and defend against  worker misclassification claims.

What Does the Law Say About Worker Misclassification?

The main law governing worker classification is the federal Fair Labor Standards Act (FLSA). Under FLSA, employers are responsible for properly classifying workers. How employers classify workers matters because employees are entitled to rights such as minimum wage, overtime pay, and benefits whereas independent contractors generally are not. 

Should a Worker Be Classified as an Employee or Independent Contractor?

Although classifying workers correctly is not always straightforward, courts will consider certain factors in determining whether a worker is an employee or independent contractor, mostly related to the amount of control (employee) and independence (independent contractor) that a worker has.

Signs a Worker is an Employee

• Usually earns more by working more hours

• Works for only one employer

• Continuing relationship with the employer

• The employer decides how an employee performs work

Signs a Worker is an Independent Contractor

• Usually works with many clients at a time

• The relationship tends to be temporary until project completion 

• Provides own materials and tools

• Decides what projects they will do

How Can Employers Prevent Misclassification Claims?

Employers should first ensure that there are clear policies and guidelines in place and communicate them to workers. They should not rely on employment agreements or independent contractor agreements as the sole factor classifying a worker. 

Rather, in order to determine if a worker is an employee or independent contractor, employers should consider how much behavioral and financial control they have over the worker. The more control employers have, the more likely a court would consider the worker to be an employee. 

Additionally, employers should have different sets of policies for employees versus independent contractors, in line with the expectations based on worker classification. Finally, employers should conduct regular audits of their workers’ classification. 

Call a Falls Church, VA Wage Claim Defense Attorney

If you face a worker misclassification claim, the experienced Lincolnia, VA wage claim defense lawyers at Salvado Law Offices are here to defend your business from these allegations. Our lawyers can also advise you on ensuring that you properly classify workers in order to prevent future disputes. Call our offices at 703-379-9446 for a consultation.