Why Do Employers Misclassify Employees As Independent Contractors?

Sometimes, employers wrongly label workers as independent contractors instead of employees. They usually do this to gain an unfair advantage or save money. In simple terms, it's all about the money. 

For instance, employers might do this to avoid paying taxes, insurance premiums, or covering work-related expenses like equipment and office space. They might also want to skip providing required breaks or paying overtime rates. This is more about being greedy and stealing wages than giving workers freedom and flexibility.

That's why in California, the law assumes workers are employees. There are many laws in place to stop, fix, and punish employers who misclassify workers. When employers misclassify workers, they can face serious consequences like owing unpaid wages, penalties, and other costs to employees.

(See Labor Code Sections 226, 226.7, 226.8, 510, 512, 1194, and 1194.2)