What is the ABC test for independent contractors?
The ABC test (used in California under AB5 and in many states for wage and unemployment purposes) presumes a worker is an employee unless the employer proves all three: (A) the worker is free from control and direction, (B) the work is outside the usual course of the hiring entity's business, and (C) the worker is customarily engaged in an independent trade. Failing any prong means employee status.
What can I recover for FLSA misclassification?
You can recover unpaid overtime (time-and-a-half for hours over 40/week) plus liquidated damages equal to that amount — effectively doubling your recovery — unless the employer proves it acted in good faith. You can also recover attorney fees and costs. The lookback is 2 years, or 3 years for willful violations.
What is the difference between misclassified-as-contractor and misclassified-as-exempt?
Contractor misclassification means you were treated as self-employed (1099) when you were really an employee, denying you overtime and benefits. Exempt misclassification means you were labeled a salaried exempt employee but did not meet the FLSA salary-basis and duties tests, so you were actually owed overtime.
How much is the FLSA salary threshold for exemption?
To be exempt from overtime, an employee generally must be paid on a salary basis above a federal threshold and perform exempt (executive, administrative, or professional) duties. The threshold is set by Department of Labor regulations and has changed over time; some states (like California and New York) set higher thresholds.