Employment Law

Employee Misclassification

Employee Misclassification (Independent Contractor vs. Employee)

Misclassifying workers as independent contractors instead of employees can lead to serious legal and financial consequences for businesses—and can deprive workers of critical legal protections and benefits. At Pardalis & Nohavicka, our Employment & Labor attorneys are highly experienced in handling employee misclassification cases on both sides of the issue.

What Is Employee Misclassification?
Employee misclassification occurs when an employer incorrectly designates a worker as an independent contractor rather than an employee. While independent contractors are generally not entitled to benefits like overtime pay, unemployment insurance, or workers’ compensation, employees are protected under a wide range of labor laws, including the Fair Labor Standards Act (FLSA) and New York Labor Law.

Misclassification can be unintentional or deliberate—and both can result in:

  • Wage and hour violations
  • Back pay claims (including unpaid overtime)
  • Tax penalties and interest from the IRS or NYS Department of Taxation
  • Liability for workers’ compensation and unemployment insurance claims
  • Class action lawsuits and government investigations

How We Help Employees
If you believe you’ve been misclassified as an independent contractor, our attorneys can evaluate your work arrangement and help you recover unpaid wages, overtime, or benefits you may have been denied. We assist clients in filing complaints with the U.S. Department of Labor, New York Department of Labor, or pursuing legal action to hold employers accountable.

Legal Support for Employers
We also counsel employers on how to properly classify workers and reduce exposure to costly litigation and government audits. Our services include:

  • Conducting worker classification audits
  • Drafting independent contractor agreements that comply with applicable laws
  • Advising on IRS and DOL classification criteria
  • Defending against audits, wage claims, or misclassification lawsuits

New York applies strict standards when evaluating whether a worker is an employee or an independent contractor. Our attorneys work closely with business owners, startups, and HR departments to ensure that your workforce structure complies with both federal and state employment laws.

Get Legal Help with Misclassification Issues
Whether you're a freelancer who should have been treated as an employee or a business navigating complex workforce issues, Pardalis & Nohavicka provides clear, strategic legal guidance to protect your rights and minimize legal risk.

Contact our team today at contact@pnlawyers.com or call to schedule a consultation with an experienced New York employment attorney.

Let's Discuss Your Legal Needs

Every legal matter starts with a conversation. Contact Pardalis & Nohavicka to schedule a confidential consultation and learn how our team can help.

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