A common tactic Illinois employers use to cheat on taxes and screw their workers is to pay someone as a 1099 and call them an independent contractor when they really aren’t one.

Being wrongly classified as an independent contractor instead of an employee can have major financial implications. Many workers find themselves shouldering costs that should be covered by their employers. If you’ve been wrongly classified as an independent contractor, you may be unfairly paying out-of-pocket for expenses like uniforms, support staff, and marketing materials. Understanding your rights and seeking reclassification can help you recover these costs and ensure fair treatment.

Employee vs. Independent Contractor
The primary difference between an employee and an independent contractor is the level of control and the nature of the work relationship. Employers have more control over employees, including setting work hours, providing training, and dictating how tasks should be completed. Independent contractors typically have more autonomy in how they work, are often hired for specific projects, and have the freedom to say no to future projects. The more control an employer has, the more likely it is you are actually an employee.

The Financial Burden of Being Misclassified as an Independent Contractor
When you are misclassified as an independent contractor, you may find yourself unfairly paying for job-related expenses. Here are some common costs that company employees typically do not have to bear:

Uniforms and Equipment: Employees usually receive uniforms and necessary equipment from their employers (e.g., clothing with the company logo, protective boots, necessary tools and technology).

Support Staff: Employers often provide administrative support or additional staff to assist employees (e.g., administrative assistant, support from graphic design professionals, IT specialists).

Marketing Materials: Employees benefit from company-provided marketing and promotional materials (e.g., company or product brochures, promotional materials and giveaways for conventions, publicity activities).

Office Space and Supplies: Employees work in company-provided office spaces with necessary supplies, and are not expected to take on overhead expenses.

What You Can Do About It

If you are called an independent contractor but treated like an employee, and you are paying for any of the above (or other examples not listed), it’s important to take action to protect yourself. An experienced Illinois employment law attorney can help you understand your rights and guide you through the process of challenging your classification and getting reimbursed for the job-related expenses that you’ve paid. In addition to fighting for the reimbursement, an attorney can potentially get the company to pay penalties for the misclassification.

There is no cost to you upfront in hiring a lawyer for this situation. The lawyer works on a contingency basis meaning they are paid a percentage of what they recover for you.

If you have any questions about your misclassification and the expenses you’ve incurred, contact us any time for a free consultation with a lawyer at 312-346-5320.