The Port of Long Beach and the city’s thriving gig economy provide countless opportunities for flexible work arrangements. However, not all arrangements labeled “independent contractor” align with California law. If your role actually functions as an employee—yet you’re classified otherwise—you might miss out on vital protections like overtime pay, workers’ compensation, and rest breaks. Knowing how misclassification works can help you claim the rights you’re legally entitled to.

Defining Misclassification

Misclassification happens when an employer designates a worker as an independent contractor instead of an employee, even though the nature of the work relationship indicates otherwise. This distinction matters because employees generally receive:

• Minimum Wage and Overtime
• Access to Workers’ Compensation
• Unemployment Insurance
• Protected Meal and Rest Breaks
• Protection Against Discrimination and Retaliation

Contractors typically do not enjoy these benefits. An employer might misclassify to reduce labor costs, even if it violates California statutes.

The ABC Test

In California, the ABC test helps determine if a worker is truly an independent contractor. A person is considered an employee unless:

1. A – The worker is free from the company’s control or direction regarding performance of the work.
2. B – The work performed is outside the usual course of the hiring entity’s business.
3. C – The worker is customarily engaged in an independently established trade, occupation, or business.

Failing even one part often indicates employee status. For instance, a delivery driver who exclusively works for one company using their routes likely fails parts B or C.

Signs You May Be Misclassified

1. Fixed Schedule
   The company dictates your work hours or requires set attendance, similar to employees.
2. Provided Tools and Equipment
   Traditional independent contractors usually supply their own tools, not rely on what the company issues.
3. Essential Role
   Your tasks form a core part of the company’s main business.
4. Long-Term Relationship
   Contractors often work on a project-by-project basis. If you’ve been doing the same tasks for an extended period, you may really be an employee.

Potential Implications of Misclassification

• Unpaid Wages and Overtime: If you’re treated as a contractor, you might lose overtime pay you would otherwise earn.
• Tax Consequences: Contractors must pay self-employment taxes, which can be higher than employee payroll taxes.
• Lack of Benefits: Employees might receive health insurance, sick leave, or retirement plans that misclassified contractors miss.
• No Workers’ Comp: If injured on the job, a contractor generally can’t file a workers’ compensation claim.

Remedies for Misclassified Workers

If you suspect you’re misclassified:

1. Gather Documentation
   Collect schedules, contracts, pay stubs, instructions from the employer, and any relevant communications.
2. Discuss Internally
   Some companies might correct the issue once it’s brought to their attention.
3. File a Complaint
   • California Department of Industrial Relations (DIR) – for wage and hour claims.
   • Internal Revenue Service (IRS) – for tax classification concerns, though typically you’ll focus on state-level protections first.
4. Explore Legal Action
   In cases where an employer refuses to reclassify and provide back pay, you may pursue a lawsuit or a claim through the Labor Commissioner.

References

1. California Department of Industrial Relations (DIR) – Addresses wage, hour, and classification disputes.
2. California Civil Rights Department (CRD) – Can assist if discrimination or retaliation is involved.
3. Internal Revenue Service (IRS) – Has resources for understanding worker classification for tax purposes.

Common Questions

1. What if I signed a contract stating I’m a contractor?
   Classification depends on actual work conditions, not just a written agreement. The ABC test can override the contract’s label if it misrepresents the reality of your role.
2. Can I get back pay or benefits for past misclassification?
   Potentially, yes. If the state or a court confirms you were legally an employee, you might recover unpaid overtime, meal-break premiums, or other entitlements.
3. Could speaking up jeopardize my job?
   Retaliation for asserting legal rights—such as raising concerns about classification—is generally unlawful. Keep records of any employer response if you do voice concerns.

Taking Action on Misclassification

Identifying whether you’re an independent contractor or an employee is critical to understanding your rights. In Long Beach, the law leans toward protecting workers in ambiguous situations. By learning the ABC test and documenting your conditions, you can ensure you receive fair treatment and compensation.

If you believe you’re misclassified in Long Beach, contact My Labor Rights. We can help clarify your status and explore the next steps to recover any lost benefits or wages.

Disclaimer: This content is intended for informational purposes only and does not constitute legal advice. For guidance on your specific situation, please consult an attorney.