Misclassification of Workers as "Independent Contractors"

Of the principal objectives of most American companies, cutting costs and increasing profits rank high on the list. In their attempts to cut costs, many companies today are classifying their workers as “independent contractors” as opposed to “employees.” This classification eliminates such costs as: overtime pay, health insurance, social security benefits, workers compensation insurance – the list goes on. In addition, workers who are classified as independent contractors have no protection from numerous worker rights statutes. Recently, the U.S. Department of Labor filed an action in U.S. District Court, Middle District of Florida against Caring First, Inc. under the Fair Labor Standards Act. The lawsuit contends that Caring First, Inc. misclassified certain of their employees, including their licensed practical nurses and registered nurses, as “independent contractors” and paid them a flat hourly rate, regardless of the number of hours worked per week. Simply put, this lawsuit alleges that Caring First classified nurses as independent contractors to avoid paying them overtime as is required by federal law. Research indicates that this action is widespread.