Misclassification and Overtime Pay Violations

Misclassified and Underpaid? You Deserve Better

You’re showing up, working long hours, meeting expectations, but your paycheck tells a different story. That disconnect? It might be misclassification. Whether you’re being told you’re “exempt” despite pulling 50+ hour weeks, or labeled an “independent contractor” while using company tools and following strict instructions, you’re likely being shortchanged. It’s more than just annoying, it’s wage theft. Our overtime violation attorneys know how to spot it and how to stop it.

At Horn Wright, LLP, our New York employment attorneys understand how employers get creative with job labels to avoid paying what’s fair. And they don’t just do it in New York. Workers in Maine, New Hampshire, and Vermont face the same tactics. These states add layers of worker protection that employers conveniently “overlook.” So if something about your classification doesn’t sit right, it’s worth digging in. Because when we say every dollar matters, we mean it.

What Misclassification Really Means

Before diving into the legal definitions, let’s talk about what misclassification actually takes away from you. Misclassification affects more than your income. It can disrupt your time, well-being, and ability to plan ahead with confidence.

What Misclassified Workers Often Lose

Misclassification is more than a paperwork issue. It can lead to unpaid overtime pay, missed breaks, and the loss of protections you’re legally entitled to as a worker. When your role is mislabeled, those benefits quietly disappear from your paycheck, affecting more than just your bottom line.

Here’s a quick look at what misclassified workers often lose out on:

• Meal and rest breaks
• Minimum wage protections
• Employer-paid taxes and benefits

These aren’t nice-to-haves. They’re legal guarantees meant to safeguard your income, health, and job security. When they’re taken away, the impact reaches far beyond your paycheck.

Sometimes it’s obvious. Other times it’s buried under job titles that sound legitimate or pay setups that seem routine. Employers use that confusion to cut labor costs, relying on unclear roles and blurred lines between worker classifications. It’s a pattern that shows up repeatedly in misclassification claims across industries.

Exempt vs. Non-Exempt: What It Really Means

Whether you’re exempt or non-exempt determines if you’re owed extra compensation for long hours, guaranteed breaks, and other job protections. In New York, exempt status requires a weekly salary of at least $1,128 and specific executive, administrative, or professional duties. A paycheck alone doesn’t qualify. When employers ignore your actual responsibilities and rely on labels, the result is often unpaid overtime and overworked employees who deserve better.

How Employers Misuse “Manager” and “Independent Contractor” Labels

Let’s talk about the “independent contractor” label. If you’re working on a fixed schedule, using company tools, and reporting to supervisors, then you’re likely functioning as an employee, not a contractor. Employers are still required to pay 1½ times their regular rate for all hours worked over 40 in a week, regardless of the job title they assign you. Using a contractor label doesn’t cancel out those rights.

Employers often pitch contractor roles as offering more freedom. In practice, it’s a way to cut corners and avoid paying for benefits, overtime, or employment taxes.

Watch for these red flags:

• You use company equipment and follow their rules
• You work set hours and report to a supervisor
• You don’t set your own pay or choose your projects

If this sounds familiar, your paycheck might be missing more than just a few hours. Misclassification can take away more than wages, cutting off access to unemployment benefits, workers’ compensation, and essential legal protections.

And that “manager” title? Same trap. If you’re not overseeing full-time staff or making real leadership decisions, you’re probably not exempt from overtime. A proposed change aimed at eliminating taxes on overtime earnings underscores how important those extra hours really are to your financial stability.

How Misclassification Leads to Overtime Theft

Sometimes it’s not the hours you work, but how your employer categorizes those hours that makes the difference. That mislabeling often leads directly to unpaid overtime.

The “Salaried” Scam That Robs You of Pay

You’re salaried, but the hours never stop piling up. You stay late, work weekends, and push through long days, but your paycheck barely changes. This is a trap many employees fall into. Unless your actual duties meet legal exemption standards, you’re probably owed more. If you’re pulling 50 hours a week at $900, you may be entitled to additional pay for those extra 10 hours. Improper wage calculations are among the most ignored violations and cost workers thousands each year.

Denied Breaks, Unpaid OT, All Hidden by a Title

Ever been told you’re “exempt,” then pressured to skip lunch, stay late, or respond to emails at 10 p.m.? That kind of expectation is everywhere, especially in jobs where low wages are paired with long hours. The pressure builds under a title that sounds legitimate but doesn’t come with the protections it should. According to the Fair Labor Standards Act, many of these so-called exempt positions are still entitled to key protections, including minimum wage and overtime pay.

Industries hit hardest include:

• Retail and sales
• Hospitality and restaurants
• Healthcare support staff
• Construction and transportation
• Call centers and administrative roles

If your job title seems to excuse unpaid work and skipped breaks, there’s likely more at play. New York employers are still required to follow the state’s basic minimum rate, which includes compensation for overtime hours. When these rights are ignored, it contributes to a larger pattern of labor abuse in high-demand sectors.

Your Job Looks Hourly, but Your Pay Says Otherwise

If you’re clocking in and out, following a rigid schedule, and reporting to a supervisor, then your job likely meets the criteria for hourly work. Yet across New York, salaried labels are often used to avoid paying overtime for roles that should qualify. This tactic leads many workers to perform off-the-clock work without realizing those hours are legally protected. What truly matters isn’t what your employer calls the job but the day-to-day work you’re actually doing.

Let’s Talk About What You’re Really Owed

If you’re stuck with the wrong job classification, losing hours you worked hard for, or being denied your breaks, you’re facing an issue that affects more people than you might think. Even small classification errors can impact your paycheck, reduce your time off, and threaten your financial stability. Our overtime violation attorneys know how employers cut corners, and you shouldn’t have to keep working under a title that hides what you’re owed. Contact Horn Wright, LLP, to take back the control you’ve earned.