Independent Contractor Misclassification Demand Letters

If you were misclassified, you can potentially recover:

1. Unpaid overtime wages: Time-and-a-half for hours over 40/week (FLSA) or over 8/day and 40/week (California)
2. Unpaid minimum wage: If you were paid below minimum wage after accounting for hours worked
3. Employer-side payroll taxes: Social Security (6.2%), Medicare (1.45%), and unemployment taxes you shouldn’t have paid
4. Liquidated damages: Up to 100% of unpaid wages under FLSA
5. Meal and rest break premiums: (California) One hour’s pay per missed break
6. Expense reimbursements: (California Labor Code § 2802) Mileage, cell phone, home office, tools
7. Waiting time penalties: (California) Up to 30 days’ wages for failure to pay final wages on time
8. Attorneys’ fees and costs: Under both FLSA and California law

Example: You worked 50 hours/week for 2 years as a misclassified “contractor” in California at $20/hour with no overtime.

Plus attorneys’ fees, which could add another $15,000–$30,000 depending on complexity.

1. Statement of employment relationship: Dates, job title/description, who supervised you
2. Factual indicia of employee status: Set hours, employer-provided equipment, training, control over methods, integration into business
3. Legal framework: Cite FLSA economic realities test and/or California ABC test
4. Violation summary: “I was misclassified as an independent contractor and denied overtime, payroll tax coverage, and expense reimbursements.”
5. Itemized damages: Unpaid OT, meal breaks, payroll taxes, waiting time penalties, expenses
6. Liquidated damages and fee-shifting: Warn that FLSA and CA law provide for doubling of damages and mandatory attorney fees
7. Deadline: 14–21 days to respond with payment or settlement proposal

Dear [Employer]:

I am writing to demand immediate payment of unpaid wages, overtime compensation, expense reimbursements, and employment taxes arising from your misclassification of me as an independent contractor. From [start date] through [end date], I worked for [Company] as a [job title/description]. Despite being classified and paid as a “1099 contractor,” I was in fact an employee under both the Fair Labor Standards Act and California law.

You exercised substantial control over my work: I was required to work [specific hours/shifts], report to [supervisor], use company-provided [equipment/tools], and perform work that was integral to your core business operations. I was not free to set my own schedule, hire assistants, or engage in an independent business. Under the federal economic realities test and California’s ABC test, I was unequivocally an employee entitled to minimum wage, overtime pay, meal and rest breaks, payroll tax coverage, and expense reimbursements.

Provide specific examples demonstrating employer control and integration:

• Set schedule: “I was required to work Monday–Friday, 8 a.m. to 5 p.m., and could not choose my own hours.”
• Supervision: “[Manager name] directed my daily tasks, reviewed my work, and required me to attend weekly team meetings.”
• Equipment: “The company provided my laptop, phone, email account, and office space.”
• Training: “I received onboarding training and ongoing performance reviews like other employees.”
• Exclusivity: “I was prohibited from working for competitors and worked exclusively for [Company].”
• Integration: “My work was identical to that of employees in the [department] and was essential to the company’s [service/product].”

Based on my actual hours worked and the wage and hour protections to which I was entitled as an employee, I calculate the following damages:

• Unpaid overtime (FLSA/CA): $[amount]
• Meal and rest break premiums (CA): $[amount]
• Unreimbursed business expenses (CA Lab. Code § 2802): $[amount]
• Employer-side payroll taxes (Social Security, Medicare, unemployment): $[amount]
• Waiting time penalties (CA Lab. Code § 203): $[amount]
• Liquidated damages (29 U.S.C. § 216(b)): $[amount]
• TOTAL DAMAGES: $[total]

In addition, I am entitled to recover my attorneys’ fees and costs under both the FLSA (29 U.S.C. § 216(b)) and California Labor Code §§ 218.5, 1194, and 2802(c).

I am prepared to resolve this matter promptly and without litigation if you remit payment in full within 21 days of the date of this letter. If I do not receive payment or a reasonable settlement proposal by [specific date], I will file complaints with the Department of Labor, the California Labor Commissioner, and the IRS, and I will pursue all available remedies in state and federal court, including class or collective action on behalf of other misclassified workers.

Please direct all communications to me at [email/phone].

Sincerely,
[Your Name]

• Company owner or CEO: Small businesses or startups
• CFO or Controller: Handles payroll and tax issues
• Human Resources director: Larger employers with dedicated HR
• General Counsel or in-house legal: Companies with legal departments
• Registered agent: For formal service or if you anticipate litigation

• Independent contractor agreement: The contract that misclassified you
• 1099 forms: IRS Form 1099-NEC or 1099-MISC showing payments
• Time records: Your own logs, calendar entries, emails showing hours worked
• Invoices or payment records: Showing amounts received
• Emails or instructions: Demonstrating employer control (schedule directives, performance feedback, etc.)
• Expense receipts: Mileage logs, phone bills, equipment purchases, home office costs
• Org charts or employee handbooks: If you were included or received the same materials as employees

You can file complaints with multiple agencies simultaneously:

You can sue in federal court (FLSA) or state court (state wage laws) without first exhausting administrative remedies.

• Your damages exceed $15,000
• The employer has sophisticated legal counsel
• You believe other workers were also misclassified (potential class action)
• The employer retaliated after you sent the demand letter
• You want to assert both federal and state claims to maximize recovery
• The employer disputes the classification (e.g., claims you meet an AB 2257 exemption)

I represent misclassified workers in federal and state wage claims, including FLSA collective actions and California class actions. I provide strategic counsel from demand letter through trial, with a focus on maximizing your recovery and holding employers accountable for wage theft.

• Classification analysis: Detailed review under FLSA economic realities test and California ABC test
• Damage calculation: Comprehensive audit of unpaid overtime, meal breaks, expenses, and payroll tax liabilities
• Demand letter drafting: Persuasive pre-litigation demand with detailed factual support and damages summary
• Agency filings: Coordinated DOL, DLSE, and IRS complaints to maximize pressure
• Federal and state litigation: Filing and prosecuting FLSA collective actions and California class actions
• Settlement negotiation: Securing six- and seven-figure settlements in misclassification cases

1. Thorough investigation: I review contracts, time records, communications, org charts, and factual indicia of control to build an airtight misclassification case
2. Multi-theory damages: I don’t just calculate unpaid overtime—I also pursue meal breaks, expense reimbursements, payroll tax refunds, and waiting time penalties to maximize your recovery
3. Aggressive pre-litigation demands: I draft demand letters that signal serious intent and reference both FLSA and state law to create maximum settlement pressure
4. Class action screening: If your employer misclassified other workers, I explore collective or class action options to multiply damages and deter future violations
5. Fee-shifting leverage: I use the fee-shifting provisions of FLSA and California law to negotiate favorable settlements—employers know they’ll pay my fees if they lose