What is Employee Misclassification?

Employee misclassification occurs when a company wrongly labels a worker to avoid paying overtime, taxes, and/or benefits.  The two most common forms are:

(1) Independent Contractor Misclassification:  You’re paid with a 1099 and denied employee benefits—even though your work is controlled and structured like a regular employee.

(2) Exempt/Salaried Misclassification:  You’re paid a salary and told you’re not eligible for overtime—even though your duties do not meet the legal test for “exempt” status under the Fair Labor Standards Act (FLSA).

In either case, the result is the same:  You’re working more and getting paid less than the law requires.

Examples of Employee Misclassification

(1) Misclassified as an Independent Contractor:

You may be called a “freelancer” or “contractor,” but if your employer controls how, when, and where you work, you may actually be an employee.

Examples include:

• A delivery driver is told when to report, what route to take, and what to wear—yet is paid without benefits or overtime.
• A construction worker reports daily to a job site, uses the company’s tools, and works under a foreman—but receives a 1099.
• A home health aide is assigned clients by an agency, follows employer policies, and cannot take outside jobs—but is classified as a contractor.

(2) Misclassified as an Exempt/Salaried Employee:

Being paid a salary doesn’t automatically mean you’re exempt from overtime. Many employees are wrongly denied overtime despite doing non-exempt work.

Examples include:

• A retail “manager” is paid a flat weekly salary while spending most of the time stocking shelves and operating the register.
• An assistant manager works 50 to 60 hours per week, supervises no staff, and has no authority to hire or fire—but is labeled “exempt.”
• A clerical worker handles repetitive administrative tasks, but is told his salary makes him ineligible for overtime.

Why do Employers Misclassify Workers?

Many employers misclassify employees to:

• Avoid paying overtime and minimum wage.
• Avoid paying health insurance, unemployment insurance, and workers’ compensation.
• Evade payroll taxes and legal obligations.
• Shift business costs to workers.

But these cost-saving shortcuts violate federal and Pennsylvania labor laws—and you may be entitled to back pay, damages, and legal fees.

How to Know if You’ve Been Misclassified

If you are wondering if you have been misclassified, ask yourself the following questions:

• Do I work full-time for one company?
• Does the company control how, when, and where I work?
• Am I paid the same amount each week, even if I work more than 40 hours?
• Do I lack the authority to manage others or make key decisions?

If you answered “yes” to these questions, you may be misclassified—and you may be entitled to compensation.

What are Your Rights if You’ve Been Misclassified?

If you’ve been misclassified, you may be entitled to:

• Unpaid Overtime Wages: For hours worked over 40 in a week.
• Back Pay: For minimum wage or wage theft violations.
• Double Damages: In cases of willful violations.
• Legal Fees: Employers may be responsible for covering the legal fees and costs incurred by employees in pursuing legal action for misclassification violations.
• Protection from Retaliation: It’s illegal for your employer to punish you for asserting your rights.

Why Workers Choose Mobilio Wood

At Mobilio Wood, we don’t just understand employment law—we live it.  Our attorneys have years of experience standing up to companies that deny workers their rights through misclassification.  We offer:

• Free consultations.
• No fees unless we win.
• Aggressive legal representation in class action and individual cases.

We’ve helped workers across many industries—hospitality, retail, construction, delivery, healthcare, and more—get the pay and protections they earned.

Take Action Today

Misclassification is theft—plain and simple.  If you’re working long hours without overtime, or if your employer treats you like an employee but pays you like a contractor, you may have a case.

Contact Mobilio Wood today for a free consultation.