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Teren Law Group - Employment Law

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  4.  » Why is employee classification an important topic?

Why is employee classification an important topic?

Employee classification may not seem like a big deal to you as long as you receive a paycheck. However, how your employer chooses to classify you is very important and impacts the compensation and longevity of your job in California. 

If your employer neglects to abide by the law or withholds pay, your awareness of the role of employee classification can help you make sure you get what is rightfully yours. 

Types of classification

The three primary ways your employer can classify you include full-time, part-time or temporary. According to PayScale, your employer can also classify you as an independent contractor or volunteer. Deciding which classification to use rests with your employer, however, they must comply with the Fair Labor Standards Act when establishing pay scales, benefits and other employment formalities. 

Experts recommend that your employer develops a consistent method for determining employment status. This can help you, the employee, know what to expect. Classification is often determined after assessing how many hours your job requires you to work and the length of your job. Your designation as an employee will determine your eligibility for benefits which makes it a critical part of your employment process. 

Reporting a problem

If you recognize a problem or feel that your classification status lacks fairness, you should immediately report your concerns to your employer. On the occasion there was a miscommunication, the HR department can help straighten out the confusion and verify that you receive what is rightfully yours. 

However, if you continue to notice discrepancies in your pay and benefits in regards to your classification, you may need to report the problem another way. If you have lost wages and benefits which you worked for and your employer denies wrongdoing, you may decide to seek compensation via a lawsuit.