How can employees tell if they are misclassified as contractors?

Misclassification as an independent contractor instead of an employee denies workers important benefits and protections. 

Understanding how California law defines employment helps employees determine if they are classified correctly.

Understand the ABC test

California applies the ABC test to classify workers as employees or independent contractors. To qualify as an independent contractor, the employer must prove all three of the following:

• The worker operates free from control and direction in their work.
• The work performed falls outside the usual course of the employer’s business.
• The worker engages in an independently established trade, occupation, or business.

Failing to meet any of these conditions indicates employee status.

Review job responsibilities

Employees compare their job duties to the criteria in the ABC test. For example, performing tasks integral to the company’s core business suggests an employee relationship. Independent contractors typically provide specialized services unrelated to the company’s primary operations.

Check for control over work

Independent contractors control how and when they perform their work. Employers dictating hours, providing tools or equipment, or closely monitoring performance signal potential misclassification as a contractor.

Look at the payment structure

Employees receive consistent wages or salaries, while employers pay independent contractors per project or based on invoices. Regular paychecks often indicate employee status.

Know your rights under California law

California’s wage and hour laws offer employees protections, such as overtime, meal breaks, and rest periods. Misclassified workers lose access to these benefits, underscoring the importance of evaluating classification carefully.

Protecting your rights in the workplace

Workers benefit from staying informed about employment classifications to ensure access to legal protections. Identifying misclassification is a critical step toward achieving fair treatment in the workplace.