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Misclassified Workers

What is worker misclassification?

Worker misclassification is a nationwide problem that has a negative impact on Pennsylvania’s economy and unemployment compensation fund, and it creates an uneven playing field for employers who properly classify their workers.

Worker misclassification occurs when employers treat certain employees as independent contractors when they should not be classified as such. This may be done to reduce payroll and other costs.

Incorrectly classifying a worker as an independent contractor causes harm to the worker by withholding rights that belong to legitimate employees.

There are many Myths about Worker Misclassification and the U.S. Department of Labor provides additional resources to help Identify the Differences Between an Employee and a Contractor.

If you feel you, or someone you know, may be misclassified or know of a business that may have misclassified workers, please take a few moments to submit the Worker Misclassification Inquiry form or call 1-866-403-6163 (option 3).

Whether you are a worker or an employer, we have more information below that can help you understand your rights and responsibilities.