If my employer has purposefully misclassified me as an independent contractor for years and now wants me to sign a very restrictive employee contract in order to keep working, what are my rights?

UPDATED: Oct 1, 2022

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If my employer has purposefully misclassified me as an independent contractor for years and now wants me to sign a very restrictive employee contract in order to keep working, what are my rights?

I have worked steadily for over 6 years with a company and been treated like an employee without any of the benefits of being one. I was not hired for any special skill, have been thoroughly trained and supervised by them at all times, am not paid per project, but by

hour, and have done the same work for them for years, on a permanent basis with them controlling all that I do. Now, after all this time, they are requiring me to sign a restrictive employee contract and are acting like I’m just coming aboard. The contract is in no way beneficial to me, in fact, it gives them attorney in fact privileges to sign my name, restricts me from pursuing any other money making

opportunities outside of them, denies me the right to sue at a later date and states that they can dictate where I work broad, could be out of state or even country, even though I have been working remotely this whole time. This company is slippery. They have required me to do illegal things in my work day and I noticed that the signature was placed in the middle of the employee contract, in hopes that I

wouldn’t read further and just sign. This honestly comes out of nowhere the contract and restricts other endeavors I’m currently pursuing, but if I don’t sign and it stops me from working, then I will not be able to pay bills and stand to lose a lot. Ultimately, I think it would be best to part ways, since they are so sneaky but would need some sort of severance to keep me afloat until I can find another job. How should I go about this?

Asked on December 26, 2017 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

You don't have any right to keep working without signing the agreement: whether you are an independent contractor or an employee, at any time, your employer can ask you to sign an employment contract of one kind or another and if you don't, they may terminate you. (The only exception is if you are already covered by a written employment contract; then they could not fire you for not signing a new one, if the existing contract prevented that.)
If they misclassified you--and based on what you write, it seems very likely that they did--you could bring a legal action to get some or all of what should have been paid to or for you had they properly treated and paid you as an employee, such as:
1) The employer portion of social security and Medicare taxes (around 6-7% of salary per year);
2) The value of health insurance which employees in similar positions  to what you actually did at this company (or at similar "levels" to the one you effectively occupied) received--i.e. if you would have received health insurance, or any employer contribution to health insurance, had you done the same exact thing but been properly treated as an employee;
3) As above for other benefits, such as PTO or pension;
4) If not overtime exempt, overtime when working more than 40 hours per week (and if paid hourly, base pay for all hours worked).
It would be worth speaking with an employment law attorney to see what you might be entitled to and if it is worth taking legal action.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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