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Misclassification of Employees as Independent Contractors in D.C.: Legal Risks and Worker Rights

Ever get the feeling your job title doesn’t match the reality of your work? In D.C., more workers than ever are discovering that being called an “independent contractor” can be a raw deal, especially if you’re hurt on the job or denied benefits. If you suspect you’re owed more, don’t settle for the wrong label. Robinson & Geraldo, PC has helped countless employees across the District reclaim their rights and recover compensation. Don’t wait for a crisis—schedule your confidential consultation now and see how a top-rated employment attorney in Columbia can make all the difference.

Your Rights Depend on the Right Label

Misclassification happens when an employer treats a worker as an independent contractor instead of an employee. On the surface, it may sound like a paperwork issue. In reality, it can have sweeping consequences for workers who lose out on critical protections such as overtime, health insurance, and the right to seek help from an attorney after an injury on the job. Misclassified workers may also miss out on minimum wage, unemployment insurance, and paid leave required by D.C. law.

Businesses sometimes misclassify workers—intentionally or by mistake—to cut costs. But in D.C., the penalties for getting this wrong are significant. Local laws, federal rules, and court decisions make it clear: the label an employer puts on a worker’s paystub does not decide the law. Instead, multiple tests and factors apply, often focusing on the employer’s control over the work and the worker’s independence.

How D.C. Law Determines Employment Status

D.C. uses the “ABC Test” for many wage and hour issues. Under this approach, a worker is presumed to be an employee unless the employer can prove all three of the following:

• The worker is free from control or direction in the performance of the work, both under the contract and in fact;

• The work performed is outside the usual course of the hiring entity’s business;

• The worker is customarily engaged in an independently established trade, occupation, or business.

If an employer fails any part of this test, the worker is considered an employee and entitled to all legal protections and benefits. This matters most after a workplace accident. Employees are covered by workers’ compensation laws—meaning they can file a claim for medical care and lost wages after an injury. Independent contractors generally cannot. If you’ve been hurt and denied benefits, a Columbia employment attorney can help you challenge your classification.

Legal Risks for Employers Who Misclassify

Employers who misclassify face major financial and legal risks in D.C.:

• Unpaid Wages and Overtime – Workers can sue for back pay, including overtime they should have earned as employees.

• Penalties and Fines – The District can impose civil penalties for violations of wage, tax, and employment laws.

• Tax Liability – The IRS may assess unpaid payroll taxes, plus penalties and interest.

• Workers’ Compensation Liability – If a misclassified worker is injured, the employer can be held responsible for benefits, even if they claimed the worker was a contractor.

• Personal Liability – In some cases, business owners can be held personally liable.

Employers should review their worker relationships regularly. If you’re not sure whether your workers are properly classified, consult with our seasoned employment lawyers today.

Rights of Misclassified Workers

When a worker is wrongly classified as an independent contractor, they often lose access to:

• Workers’ Compensation – Employees injured at work can seek help from a lawyer and may recover medical bills and lost wages. Contractors usually cannot.

• Overtime and Minimum Wage – Employees are entitled to D.C. minimum wage and overtime pay for hours over 40 per week. Contractors are not.

• Paid Sick Leave – D.C. law requires most employers to provide paid sick days, but only to employees.

• Unemployment Insurance – Only employees are eligible for unemployment benefits if they lose their job.

• Protections Against Discrimination and Retaliation – Employees have rights under local and federal law that contractors do not.

If you believe you’ve been misclassified, you may have a right to recover lost wages, secure benefits, or file a claim after an on-the-job injury. Speak with our employment attorney to understand your options.

How to Tell If You’ve Been Misclassified

Ask these questions:

1. Do you set your own schedule and control how work is performed, or does the business supervise you closely?
2. Are you required to use company equipment, wear a uniform, or follow strict guidelines?
   Do you have the ability to take on other clients or projects, or is your work exclusive?
3. Does the company’s business depend on the work you perform?

If most of your answers suggest company control, you may be an employee—regardless of what your contract or job title says. T

Need Help with Misclassification?

Misclassification of employees as independent contractors remains a costly error for both workers and employers in D.C., but the law offers strong protections for those willing to take action; trust Robinson & Geraldo, PC to review your situation, pursue fair compensation, and resolve your employment status—contact us today to secure your rights and restore your peace of mind.