Misclassification
nounAlso called worker misclassification · 1099 misclassification
Misclassification is being treated as an independent contractor when the working relationship looks like employment.
In plain words
Two labels, one relationship. Misclassification is the gap between the label on the paperwork and the way the work actually ran.
What is being compared is the day-to-day arrangement, not the job title.
Where you'll see it
On 1099s, and in the contract you signed at the start.
In disputes about overtime, expenses or benefits, where it is usually the first question asked.
Why it gets confused
A signed contract calling someone a contractor does not settle it on its own.
Both sides often believe the paperwork is the answer. It is one piece of evidence about the relationship, alongside how the work was actually done.
If this term is in play, this is what your record needs
- 01Who set your hours.
- 02Whose equipment and materials you used.
- 03Whether you were free to work for others.
- 04How and when you were paid, and what you were told at the start.
Not what to argue — what to have written down.