ATTORNEY ADVERTISING | Paul M. Botros, Esq. | Licensed in Texas and Florida

Misclassified & Owed Overtime?

If you work in Tech, Sales, or as an Independent Contractor, your employer may be using false labels to avoid paying overtime. Don't be fooledβ€”your actual duties determine your rights.

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Calculate Your Unpaid Overtime

Get an estimate of what you're owed in just 60 seconds. This calculator is based on federal FLSA laws and includes liquidated damages (double your unpaid wages).

How Are You Paid?

$ /hour
hours
Must be your *paid* hours (can be under 40)
weeks
Default is 1 year (52 weeks). Adjust if different.

Did You Perform Work Off-the-Clock?

This includes work before/after shifts, during breaks, or from home that wasn't recorded or paid.

This calculation is an estimate based on applicable labor laws. Your actual recovery may vary based on state laws and specific circumstances.

Don't Be Fooled by Labels

What your employer calls you doesn't matter. Whether you're labeled as an "independent contractor," "exempt employee," "consultant," or "freelancer," your actual work relationship determines your legal rights. If you're really an employee, you're entitled to employee protections regardless of your job title.

1. Independent Contractor (1099) Misclassification

Employers often misclassify workers as "1099 contractors" to avoid paying overtime, benefits, and taxes. But under federal law (the "Economic Reality Test"), you are likely an employee if you are economically dependent on the employer.

Employee vs. Independent Contractor

Factor Employee Indicators Contractor Indicators
Work Schedule Employer sets hours You set your own hours
Supervision Employer directs your work You work independently
Tools & Equipment Employer provides them You provide your own
Exclusivity You work for one company You have multiple clients
Pay Method Hourly, salary, or piece rate Flat fee per project
Profit/Loss No risk of loss Can lose money on jobs

2. Exempt Employee Misclassification

Many salaried employees are told they aren't entitled to overtime because they are "exempt." However, to be legally exempt, you must pass BOTH the Salary Basis Test and the Duties Test.

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1. Salary Basis Test

You must earn at least $684 per week ($35,568 annually).

If you make less than this threshold, you are automatically entitled to overtime pay, regardless of your job duties or title.

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2. Duties Test

Your primary duties must be executive, administrative, or professional.

You must exercise independent judgment and discretion. Simply following a manual or doing the same work as hourly employees usually doesn't qualify.

⚠️ Common Misclassification Red Flags

  • 🚩 You're called a "manager" but don't actually manage anyone
  • 🚩 Your salary is below $684/week ($35,568/year)
  • 🚩 You spend most of your time doing the same work as hourly employees
  • 🚩 You have little or no authority to hire, fire, or discipline
  • 🚩 Your employer docks your pay for partial day absences
  • 🚩 You don't use independent judgment in significant business decisions

Common Misclassified Positions

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Assistant Managers

Title says "manager" but you don't hire, fire, or supervise employees independently.

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Field Service Techs

Labeled "contractors" but work for one company under their strict schedule.

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Office Coordinators

Administrative duties following set procedures, not exercising independent judgment.

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Construction Labor

Paid day rates or "contract" fees but treated exactly like hourly employees.

What You Can Recover

Misclassification cases often result in significant recoveries because the violations typically span years. You may be entitled to:

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Unpaid Overtime Wages

For up to 2-3 years back (or longer in some states)

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Liquidated Damages

Double the amount of your unpaid wages

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Attorney's Fees & Costs

Paid by your employer - not deducted from your recovery

Frequently Asked Questions

What is the difference between 1099 and W-2 misclassification?

1099 misclassification occurs when an employer treats you as an independent contractor (issuing a 1099 form) when you should be classified as an employee (W-2). W-2 exempt misclassification occurs when an employer pays you as a salaried employee but incorrectly claims you're exempt from overtime. Both types of misclassification deny you overtime pay, but the legal tests differ. Independent contractor status depends on economic dependence and control, while exempt status requires meeting strict salary and duties tests.

How do I know if I'm really an independent contractor or an employee?

Under federal law, the key question is whether you are economically dependent on the employer. If your employer controls your work schedule, provides tools and equipment, directs how you perform your work, and you work exclusively or primarily for one company, you're likely an employee regardless of what your contract says. True independent contractors set their own hours, use their own equipment, work for multiple clients, and have the opportunity for profit or loss based on their business decisions.

Can my employer call me a manager to avoid paying overtime?

No. Job titles don't determine overtime eligibility - your actual duties do. To be exempt as a manager, you must: (1) earn at least $684/week, (2) have management as your primary duty, (3) regularly supervise at least two full-time employees, and (4) have authority to hire, fire, or make recommendations that carry particular weight. If you're called an "Assistant Manager" but spend most of your time doing the same work as hourly employees, you're likely entitled to overtime.

What is the ABC test and how does it affect me?

The ABC test is used in some states (like California and New Jersey) to determine independent contractor status. Under this test, you're presumed to be an employee unless the employer proves all three: (A) you're free from control in performing work, (B) you perform work outside the usual course of the employer's business, and (C) you're customarily engaged in an independently established trade or business. This test is harder for employers to meet than the federal test, providing stronger worker protections.

Can I be misclassified if I signed a contract saying I'm a contractor?

Yes. Your actual working relationship determines your status, not what you signed. Courts and the Department of Labor look at the economic reality of your work relationship, not labels or contracts. If you're economically dependent on the employer and they control your work, you're an employee regardless of what your contract says. Employers cannot use contracts to waive your rights to overtime pay and other employee protections.

What if I work remotely or set my own schedule - am I still an employee?

Possibly. Remote work and flexible scheduling don't automatically make you a contractor. Many employees work remotely and have flexible schedules. The key factors are: Does your employer assign your work? Do they provide equipment and software? Do you work primarily for one company? Are you integrated into their business operations? If yes, you're likely an employee. True contractors market their services to multiple clients and operate independent businesses.

How far back can I recover wages for misclassification?

Under federal FLSA law, you can recover 2-3 years of unpaid overtime (3 years if the violation was willful). Some states provide longer periods - California allows 3-4 years, and New York allows up to 6 years. Because misclassification often continues for years, recoveries can be substantial. For example, if you were misclassified for 3 years and owed $10,000/year in overtime, your total recovery with liquidated damages could exceed $60,000.

Will I lose my job if I file a misclassification claim?

Federal law prohibits retaliation for filing wage claims or asserting your rights. If your employer fires, demotes, or otherwise retaliates against you for filing a misclassification claim, that's a separate legal violation with its own damages. Many workers successfully file claims while still employed. If you're concerned about retaliation, we can discuss strategies including filing as part of a collective action where multiple workers join together.

Think You've Been Misclassified?

Get a free, confidential case evaluation. We'll review your specific duties and pay structure to tell you if you're entitled to overtime.

Free Misclassification Case Review

Tell us about your job duties and how you are paid. We'll help you understand your rights.

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State-Specific Misclassification Protections

California (ABC Test) New Jersey New York Illinois Texas