When drivers are classified as independent contractors, they are responsible for paying FICA and social security taxes themselves. When they are classified as employees, it becomes more costly for employers. Employers are then required to pay taxes, federal social security, and employee benefits. Employers are also required to comply with federal and state wage and hour laws.
Misclassification of employees as independent contractors in order to save an employer some money is prohibited and comes with significant penalties to the employer. If you believe you have been misclassified as an independent contractor or your rights have been violated in another way at work, contact Los Angeles employment law experts at the Rager Law Firm to schedule a consultation.