Are you unsure if your employer has appropriately classified you? It is essential to know the difference between the classifications because making an error in an employee or independent contractor classification is against the law. Many employers have encountered the consequences of making errors in employee classification.
At Hollis Law Firm, our skilled employment attorneys can help you evaluate your employer’s errors and build a case to fight for the compensation owed to you. Below you will find more information about employee misclassification and how an attorney can help.
What Is Employee Misclassification?
Whether small or large, every business owner needs to properly report their employees along with their appropriate job classification for wage and tax purposes. Generally, an employer will misclassify an employee to avoid overtime pay, avoid citizenship verification upon hire, or other reasons to avoid labor laws. This is a severe crime, and employees have the legal right to sue an employer that tries to defy the law.
There are different ways employee misclassification affects workers, and a prime example is through loss of wages. Employers who misclassify employees often avoid more pay, eligibility for benefits, Paid time off, vacation time, and other benefits for their staff. It may be challenging to understand the rules and eligibility for employee classification based on an employer’s duties, job titles, and other factors. Seeking professional legal advice can help you understand labor laws, employee rights, and other essential components of a lawsuit.
How Do I Know If I Am Classified Properly at My Job?
Every employer needs to report employee classifications for their staff. Labor laws enforce the responsibilities of a business owner and clearly outline rights that employees are entitled to. Not all employers correctly follow these rules and regulations, leading to legal consequences.
Exempt employees are exempted from overtime pay because they are classified within an executive, professional, administrative, or outside sales employee role, and they meet the specific requirements for exemption according to the Fair Labor Standards Act (FLSA). These roles must be paid on a salary basis.
Non-exempt employees are not exempt from overtime pay and are entitled to overtime beyond the 40 hours in a workweek. The FLSA outlines the overtime provisions that non-exempt employees are entitled to under this categorization. Non-exempt employees may be paid under salary, hourly, or other bases.
Independent contractors work without the legal rights and protections of traditional employees. They are in a separate category because they are often self-employed and offer services to people and businesses in their industry. There are certain restrictions when determining whether an individual’s labor is within an employee’s or independent contractor’s scope.
Penalty for Employee Misclassification in Kansas City
Understanding labor laws, employee rights, and legal repercussions can be stressful. Seeking a skilled employment attorney can help you understand the law and build your case for an employee misclassification lawsuit in Kansas City. This is a severe crime, and your employer needs to be held accountable for withholding your earnings and attempting to disregard your rights.
Kansas statute 44-766 states:
“No person shall knowingly and intentionally misclassify an employee as an independent contractor for the sole or primary purpose of avoiding either state income tax withholding and reporting requirements or state unemployment insurance contributions reporting requirements.”
This explains that it is against the law for any employer to knowingly and intentionally misclassify an employee to withhold earnings, benefits, and other rights included for employee status.
Penalty for Employee Misclassification
If an employer is convicted of misclassifying employees, financial penalties and charges are added to their record. Depending on the number of offenses, penalties can increase due to repetitive attempts. The revenue department is notified of any wrongful withholding, misclassification, and employer conduct that is against the law.
- First offense: Individual in violation is subject to civil penalties for the taxable years involved with an amount determined by the 79-3228
- Second offense: In addition to the repercussions of a first offense, a second conviction is also punishable by being guilty of a class C nonperson misdemeanor.
- Third or subsequent offense: In addition to the repercussions of a first offense, a third or subsequent offense is also punishable by receiving a class A nonperson misdemeanor.
Any employer who commits these offenses is legally obligated to prosecution for their criminal offenses. By understanding the law and hiring legal counsel, you can confront your employer’s wrongdoings in a court of law to retrieve the wages and rights robbed from you.
Call Hollis Law Firm for a Skilled Employment Law Attorney in Kansas City
At Hollis Law Firm, our skilled employment law attorneys can help you receive legal advice and the representation you need for your case. Our dedicated attorneys and legal firm bring years of experience and skilled strategies to every case presented to us. We are eager to help our clients in the Kansas and Missouri areas regain their rights and compensation owed to them. Reach out to us through our contact form or give us a call at (800) 701-3672 to schedule your free consultation.