Misclassification of workers

Misclassification of workers occurs when an individual’s employment status is incorrectly labeled—either as an independent contractor instead of an employee, or vice versa. This can lead to issues like the worker not receiving appropriate benefits, protections, or tax contributions. It often happens due to misunderstandings about the nature of the work relationship. Accurate classification is important because it affects workers' rights and employers' legal obligations, including taxes, insurance, and compliance with labor laws. Proper classification ensures that workers are afforded the benefits and protections they are entitled to under the law.