Everyone who works in Tennessee or elsewhere in the country has a classification. This classification has a tremendous impact on the worker’s rights, especially regarding salary and benefits. The laws related to employee classification are complex, and if an employer misclassifies his or her workers, it could lead to wage and hour disputes, among other issues.
Sometimes an employer simply does not understand the law and mistakenly places a worker in the wrong class. For example, the employer may not understand the difference between a contract worker and a regular employee. However, the difference is critical, and the employee could suffer financially from a misclassification. The worker may be denied overtime or become ineligible for paid vacations or sick leave.
On the other hand, some employers who understand the complex classification system intentionally misclassify their employees to save money. For instance, classifying workers as exempt instead of nonexempt employees means the business owner does not have to pay insurance, overtime or certain taxes. Employers who misclassify workers, whether intentionally or by mistake, are breaking the law and may be subject to harsh penalties.
Workers who are misclassified by employers may have wage and hour disputes because of the error. They may take home less pay and miss out on benefits they deserve. Fortunately, there are options available. A successful civil claim against an offending employer may lead to significant recovery, including the potential for double the amount the employer withheld in overtime pay. Tennessee employees who believe they are misclassified can begin seeking damages by contacting an attorney for an evaluation of their cases.