Georgia boasts a diverse and expanding workforce, with millions employed across various industries and sectors. From small businesses to large corporations, employers in Georgia depend on a mix of employees and independent contractors to accomplish their goals.
The state has a robust tradition of fostering business growth while ensuring worker protection. Consequently, most Georgia employers with three or more workers (including part-time employees) are required to carry workers’ compensation insurance.
Unfortunately, some employers intentionally misclassify their employees as independent contractors to avoid providing benefits after a work-related accident or injury. These employers can face significant penalties and legal consequences.
Teen Worker Falls from Roof, Revealing Larger Issues
In 2022, a teenager performing roofing work for a Georgia contractor fell and sustained injuries. Fortunately, the 17-year-old only suffered minor injuries, but the incident highlighted serious violations. The company had failed to pay several employees their full wages and violated child labor laws.
The teen should never have been doing such hazardous work, as the U.S. Department of Labor prohibits employees under 18 from performing roofing work or any other hazardous jobs that increase the risk of injury.
Additionally, the Department of Labor’s Wage and Hour Division found that JVS Roofing had misclassified its workers as independent contractors, cheating them out of approximately $3,000 in pay. The company was fined $6,000 for child labor law violations and had to pay over $92,000 in back wages to the affected workers. They also faced penalties for safety violations.
Factors Determining Worker Classification
The rise of the gig economy has led to more workers becoming independent contractors, but the distinction between employees and contractors can be unclear. Key factors include:
– Employees: Workers on a company’s payroll, receiving benefits, and having taxes deducted from their paychecks.
– Independent Contractors: Self-employed individuals or companies providing services under a contract. They control their work and are responsible for their taxes, benefits, and expenses, enjoying more flexibility but lacking employee protections under the Fair Labor Standards Act.
Consequences of Misclassification for Workers
Employers are prohibited from misclassifying employees as independent contractors to save on benefits or wages. Misclassified workers face several consequences:
– Paying their taxes out-of-pocket
– Ineligibility for Georgia unemployment benefits if terminated or laid off
– No protection under labor laws for sick pay, overtime, or minimum wage
– Ineligibility for employer healthcare benefits
Consequences for Employers Misclassifying Workers
Employers face serious repercussions for deliberately misclassifying workers, including paying owed back wages and potential lawsuits from employees. Additional penalties include:
– Failing to withhold federal and state taxes, Social Security, and Medicare taxes
– Failing to pay state unemployment insurance
– Failing to purchase required workers’ compensation insurance
– Non-compliance with the Family and Medical Leave Act (FMLA)
Repeated misclassification to save money can lead to further penalties.
Contact a Georgia Workers’ Compensation Attorney
If you are a Georgia employee who suffered a job-related injury or illness, you are entitled to workers’ compensation benefits for medical expenses and lost wages during recovery. If you believe your employer has misclassified you as an independent contractor to avoid paying these benefits, contact a workers’ compensation attorney promptly to protect your rights.
We believe all workers deserve a safe and supportive work environment. If you’ve suffered an on-the-job illness or injury in Atlanta, contact our experienced attorneys for assistance with your claim.