6 Signs You Are Not Classified as an Employee Correctly
California has made worker classification a serious legal issue. Thanks to laws like AB 5 and landmark court rulings such as Dynamex v. Superior Court, most workers are presumed employees unless their employer proves otherwise under the “ABC test.”
Why is this a big deal anyway?
Misclassification lets employers dodge paying minimum wage, overtime, workers’ compensation, unemployment insurance, and other protections.
If your job feels more like one of an employee, but you’ve been told you’re a contractor or exempt, you should pay attention.
At In Motion Law, we help people spot when classification is wrong and reclaim what they’re owed.
How to Know if You Are Not Classified Correctly?
Here are six common signs that you might not be classified properly under California law:
1. Your Employer Controls When, Where, and How You Work
If your employer dictates your schedule, sets strict hours, requires you to use their tools or follow detailed instructions, it’s a red flag. Under the ABC test (Labor Code § 2775 and related sections), one of the requirements for being a true independent contractor is that you’re free from the control and direction of the employer, both in writing and in practice.
When your work resembles what employees do, not custom, your classification could be wrong.
2. Your Work is Core to the Business
If you provide services central to the business’s operations (e.g., a delivery app’s driver, a café’s barista, or a cleaning crew for a cleaning service business), then being treated as “independent” may defy legal norms. The ABC test says that to be a contractor, your work must be outside the usual course of the hiring entity’s business. If you’re doing what the business depends on, that’s a sign you should be an employee.
3. You Don’t Bear Business Risk or Provide Your Own Tools
Independent contractors usually have an established trade or business of their own, including investing in tools, equipment, or materials. If your employer supplies all your tools or you don’t have a chance to profit (or lose) based on how you do the work, that’s a sign of being an employee. On the flip side, that also includes lack of ability to hire helpers or manage some operational risk.
4. You’re Paid like an Employee, Not Based on Projects
If you’re paid per hour or per shift, have tax withheld (W-2 style), or receive benefits like health insurance or paid leave, then being labeled a contractor may just be wrong. Independent contractors usually invoice per project or deliverable, manage their own expenses, and do not get the same benefits. Regular pay per hour or shift with deductions is a strong sign you are an employee under the law.
5. The Relationship Isn’t Truly Temporary or Task-Based
If you’ve been working for the same entity for a long time, doing recurring tasks, with no defined end to your arrangement, that points to employee status. Independent contractors are more likely to have contractually defined tasks, clear endpoints, or flexibility to work for multiple clients. Ongoing obligations, consistent hours, repeating schedule—all hint toward misclassification.
6. Exemption Claims Don’t Match Your Actual Duties
Sometimes your employer may claim you are “exempt” (no overtime, no certain protections) because of your title or a contract. But titles alone don’t matter—what you actually do matters.
For example, “manager” title in name doesn’t exempt you if you spend most of your time doing hands-on, non-managerial work without exercising independent judgment or supervising others as required under California’s Labor Code. If this mismatch exists, you might be misclassified.
What You Should Do If You See These Signs
If you recognize several of these in your work situation, document everything. Keep records of hours, pay, instructions, contracts, job descriptions. Ask your employer for clarification.
Most importantly, talk to a San Diego employment lawyer. Misclassification claims can be complex, but the potential recovery is significant as it includes back pay, overtime, benefits, and damages.
Find Out if You’re Actually an “Employee”
California presumes most workers are employees, especially under AB 5 and the ABC test, and provides strong protections when misclassification is proven. If the way you work looks like employment in practice, chances are your classification should too.
Contact In Motion Law today for a case evaluation. We’ll help you dissect your working relationship, assess your rights, and fight for the compensation and protections you deserve. Call at 619-693-8336 today.
Source:
courts.ca.gov/opinions/archive/S222732.PDF
