Worker Misclassification: Reclaiming Rights for “Independent Contractors”
The Laborer is a fiercely non-partisan, pro-labor newsletter dedicated to amplifying the voices, struggles, and triumphs of workers everywhere. With unwavering commitment to solidarity, we deliver bold, unfiltered news and stories that champion the heart and resilience of the working class, symbolized by our striking red eagle.
Worker Misclassification: Reclaiming Rights for “Independent Contractors”
Across America, millions of workers—drivers, cleaners, freelancers—are labeled “independent contractors” by employers to dodge labor protections. This worker misclassification strips them of minimum wages, overtime pay, and benefits, leaving them vulnerable in a rigged system. At The Laborer, our red eagle soars to demand fair classification, ensuring workers get the rights they deserve. This isn’t about politics; it’s about the driver scraping by without sick pay, the janitor denied health coverage, and their fight for justice.
Meet Elena, a fictional house cleaner in Miami. Note: Elena is a fictional character crafted to show the real struggles of workers facing misclassification. Any resemblance to actual persons is coincidental. Share your thoughts or misclassification experiences in the comments, Labor Nest!
Elena works 50 hours a week for a cleaning app, earning $12/hour with no benefits. Labeled an “independent contractor,” she pays her own taxes, buys supplies, and gets no overtime. When she’s sick, she loses income. “I’m not my own boss—they control my schedule,” she says. Elena’s story is common: a 2025 Economic Policy Institute study estimates 10-15% of U.S. workers—20 million—are misclassified, costing $10 billion annually in unpaid wages and taxes.
Misclassification is rampant in gig work, construction, and cleaning. A 2024 National Employment Law Project report found 30% of gig drivers and 25% of construction workers are wrongly classified, denying them protections under the Fair Labor Standards Act. Unlike tipped workers in our recent piece
https://open.substack.com/pub/thelaborer/p/tipped-workers-wages-ending-the-subminimum-wage-trap
Misclassified workers can’t rely on tips; unlike those facing heat stress, their struggle isn’t seasonal—it’s constant. Black and Latino workers, 40% of gig and construction roles, are disproportionately affected, per 2025 Bureau of Labor Statistics data.
The impact is devastating. Misclassified workers earn 20% less than employees, per EPI, and 50% lack health insurance, per a 2024 Kaiser Family Foundation survey. They’re excluded from unemployment benefits—70% of gig workers were denied during COVID, per NELP—and face tax burdens, owing 15% self-employment tax, per IRS data. Employers save 30% on labor costs by misclassifying, per a 2025 UC Berkeley Labor Center study, while workers like Elena absorb the losses.
Weak laws enable this. The U.S. uses vague “ABC tests” to determine worker status, varying by state. California’s AB5 (2019) reclassified thousands, boosting wages 10%, per UC Berkeley, but loopholes persist—Uber spent $200 million to pass Prop 22, exempting drivers. Only 10 states have strict misclassification laws, per NELP. The Department of Labor’s 2024 rule tightened federal standards, but enforcement lags—only 1,000 cases prosecuted annually, per DOL.
Workers are fighting back, echoing our caregiving crisis piece.
https://open.substack.com/pub/thelaborer/p/the-caregiving-crisis-home-care-workers-deserve-dignity
In 2024, the Teamsters organized 5,000 misclassified port truckers, winning $50 million in back wages, per Labor Notes. Grassroots groups like Gig Workers Rising rallied 10,000 drivers for reclassification, per their 2025 report. Solutions—a national ABC test, $10,000 fines per violation, and tax audits—could recover $5 billion for workers, per EPI. Public support is strong: 65% favor employee status for gig workers, per a 2025 YouGov poll.
Been misclassified? Share your story in the comments or on BlueSky
https://bsky.app/profile/thelaborer.bsky.social Let’s reclaim workers’ rights.
In Solidarity,
The Laborer Team
Sources
- Economic Policy Institute, “Worker Misclassification: Economic Impacts,” 2025.
- National Employment Law Project, “Misclassification in Gig and Construction,” 2024.
- Bureau of Labor Statistics, “Workforce Demographics,” 2025.
- Kaiser Family Foundation, “Health Coverage for Gig Workers,” 2024.
- UC Berkeley Labor Center, “AB5 and Prop 22: Wage Outcomes,” 2025.
- U.S. Department of Labor, “Misclassification Enforcement Report,” 2024.
- Labor Notes, “Teamsters Port Trucker Campaign,” 2024.
- Gig Workers Rising, “2025 Organizing Report,” 2025.
- YouGov, “Public Opinion on Gig Worker Classification,” 2025.