Misclassification & Unpaid Wage Claims

Labeled an Independent Contractor? You Might Be Owed Thousands

It’s common for workers to discover they were classified as “independent contractors” only to realize they were doing the exact same work as employees, without overtime, benefits, or minimum wage protections. That misclassification isn’t a technicality, it can cost you thousands in lost pay. If you performed work under employer control, weren’t free to set your own schedule, and didn’t have genuine business independence, New York law likely considers you an employee.

At Horn Wright, LLP, our employment law attorneys help misclassified workers reclaim what they lost. Misclassification often means missing wages, denied overtime, and denied benefits. That kind of injustice is illegal under both federal and New York statutes, and we know how to prove it.

You don’t have to accept the label your employer assigned. If your daily work conditions mirrored employee status, training, equipment, direction, you may be due back pay. Misclassification isn’t just unfair, it violates worker rights.

Our team helps you unravel classification myths and build claims that recover earned wages, penalties, and protections you were denied.

How New York Defines “Employee” vs. “Contractor”

New York applies a broad “control test” under both NY Labor Law § 2 and wage statutes, focusing on the degree of employer control, not just titles. Courts weigh factors like scheduling, supervision, provision of materials, and independence in setting rates to determine classification.

Under federal law, the Fair Labor Standards Act (FLSA) uses a similar test focusing on economic dependence. If you're economically dependent on one business for your livelihood, you're likely an employee, not a contractor.

New York courts have ruled that even workers who label themselves contractors may still be employees if the employer exerts control over key aspects of their work. That means job titles alone don’t tell the truth.

Understanding classification is critical. If reclassified correctly, you may qualify for unpaid wages, overtime, spread-of-hours pay, and penalties under Articles 6 and 19 of NY Labor Law.

Signs You’ve Been Misclassified by Your Employer

Common signals of misclassification include: consistent shifts, set pay rates, employer-provided tools, mandatory training, and inability to accept outside work. If you don’t set your own hours or bring your own equipment, you likely had employee-like dependency.

Many gig workers, delivery drivers, retail assistants, or construction helpers are labeled as contractors yet work under employer control. In court, such conditions often result in reclassification under New York and federal standards.

If you were denied overtime, paid a flat fee per job, or lacked wage statements, these are red flags, not just differences in payment structure. Misclassification strips you of critical legal protections. Recognizing these signs helps strengthen your case.

With misclassification claims, the burden is on you to provide context, but the law looks at substance, not form. Your working conditions matter more than labels.

What You’re Entitled to If You Were Misclassified

Once reclassified as an employee, you are entitled to recover unpaid wages, overtime (at time-and-a-half for hours over 40), spread-of-hours pay for shifts over ten hours, unpaid vacation, bonuses, and tips withheld improperly.

Under NY Labor Law § 198, you may recover unpaid wages plus liquidated damages, typically equal to the unpaid amount, and interest. If you win, your employer may also be responsible for attorney’s fees and legal costs.

If your employer misclassified you intentionally to avoid paying benefits or overtime, FLSA statutes permit further penalties under federal law. That means you may pursue both state and federal claims concurrently.

With successful reclassification claims, workers also regain eligibility for benefits like unemployment insurance, worker’s compensation, and paid leave in certain cases. You don’t just reclaim past wages, you restore full employee status.

Freelancers, Day Laborers, and the Construction Industry in NY

In industries like construction, many skilled workers are paid per day or per job under a contractor label. However, if the hiring manager assigns tasks, sets hours, or provides tools, those labels don’t hold up under New York’s control test.

Day labor sites and hiring halls often claim contractor status, but workers are regularly classified as employees in wage theft litigation when conditions mirror employment. New York Labor Law and FLSA case law have validated those reclassifications in multiple industries.

Freelancers who rely on a single client for consistent work may also be considered employees rather than contractors. Even when tax forms say “1099 independent contractor,” the law focuses on control and economic dependence.

Recovery in these cases can be significant because layers of misclassification multiply across pay periods. We help you calculate and recover wages, even when daily rates were low.

How Misclassification Affects Overtime, Minimum Wage, and Benefits

When misclassified, your employer may not pay overtime or minimum wage, and that affects hours worked beyond 40 per week or less than the standard rate. You can file claims under NYLL Articles 6 and 19, and FLSA claims for federal overtime violations may also apply.

Benefits like paid sick leave, unemployment insurance, and worker’s compensation may be denied under contractor statuses. When reclassified, you may gain entitlement to benefits you never received. Restoring those rights provides long-term protection.

Misclassification often creates tax implications. Employers may issue 1099s instead of W-2s, meaning you may pay self-employment tax and miss tax benefits tied to employment. Reclassification can correct reporting and eligibility issues.

Understanding the full impact of misclassification requires layered legal review. Recovering unpaid wages is only part of restoring full employment rights.

New York vs. Vermont: New York Applies a Broader “Control Test” for Worker Classification

New York uses a broad, flexible control test that considers real-world working conditions. When the employer controls schedule, tools, training, and earnings, you’re likely an employee. That test favors workers.

Vermont applies a narrower test focused on initiative and entrepreneurial opportunity. If workers have freedom to accept outside gigs and set their own method of performance, Vermont may recognize contractor status more easily. New York allows a less rigid classification test.

That makes New York one of the most protective states for misclassification claims. Workers have legal recourse even when their label says “contractor,” as long as workplace control mirrors employee status.

These differences mean New York workers have more powerful tools to correct misclassification and recover wages, even when state lines blur depending on workplace structure.

Horn Wright, LLP, Can Help You Challenge Misclassification and Get Paid What You’re Owed

If you were labeled an independent contractor, but worked like an employee, you deserve full compensation. At Horn Wright, LLP, our employment law attorneys build misclassification claims based on working conditions, control factors, and wage laws, plus federal FLSA standards.

We analyze documents, schedules, communications, and working patterns to prove control and dependency. We file claims to recover unpaid wages, overtime, spread-of-hours pay, liquidated damages, and legal fees. Your case may include multiple employers, staffing entities, and joint liability actions.

Work with a legal team known for winning misclassification cases across New York. Let us help you enforce your rights, and recover every dollar you earned.