Private members-only forum

Worker Misclassification as Independent Contractor: Gender Pay Gap

Started by paycheck_to_paycheck_35 · Feb 27, 2024 · 2,434 views · 0 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
PT
paycheck_to_paycheck_35 OP

On mobile so apologies for formatting. Quick background on my situation — any input appreciated.

hostile work environment complaint ignored. I've been dealing with this for about 14 weeks now and the situation isn't improving.

I have worked at this company for 3 years. My position is exempt and I do have a written employment agreement beyond the standard offer letter.

Do I have a strong case? What should my next steps be?

AT
AttorneyMark_8

Real talk: you may actually have two separate but related claims here, and teh misclassification issue could significantly strengthen your hostile work environment case. Let me break this down.

On the misclassification front: the IRS uses a multi-factor test (consolidated into three categories) to determine worker status. The key factors are:

  • Behavioral control: Does the company dictate when, where, and how you work? If yes, you are likely an employee
  • Financial control: Do you have your own business expenses, opportunity for profit or loss, and serve multiple clients? If no, you are likely an employee
  • Relationship type: Is there a written contract, benefits, and expectation of ongoing work? Employee indicators

Why the misclassification matters for your hostile work environment claim: if you are reclassified as an employee, you gain access to Title VII protections (for companies with 15+ employees) and state anti-discrimination laws. Independent contractors generally cannot bring hostile work environment claims under Title VII, though some state laws have been expanding protections in recent years.

Regarding the ignored complaint: under Title VII, an employer has a legal obligation to investigate complaints of harassment promptly and thoroughly. The landmark case Burlington Industries v. Ellerth (1998) established that an employer can be held vicariously liable for supervisor harassment if they failed to take reasonable steps to prevent and correct the behavior. Your documented complaint creates a strong record that the employer knew about the problem and did nothing just saying.

File Form SS-8 with the IRS for a worker classification determination, and simultaneously file an EEOC charge for the hostile work environment. These processes can run in parallel. Many employment attorneys will take misclassification cases on contingency because back taxes, penalties, and unpaid benefits create substantial potential recovery.