What is the procedure for reporting an employer for misclassifying employees as independent contractors in California?
In California, you can report employer misclassification by filing claims or reports with the Labor Commissioner's Office and the Employment Development Department (EDD). Here is the procedure for doing so:
Step 1: Gather Your Documentation
Collect all records related to your work. This includes any signed contract, pay stubs or invoices, correspondence (especially emails or texts showing employer control over your work), time records, and a list of job duties. Strong documentation is critical for a successful claim.
Step 2: File a Wage Claim for Unpaid Wages
To recover unpaid minimum wages, overtime, or missed meal and rest breaks, you must file a "Claim for Wages" with the California Labor Commissioner’s Office (also called the Division of Labor Standards Enforcement, or DLSE). You can file the claim online via the DLSE website or by mail. Generally, you have three years from the date of the violation to file.
Step 3: File a Complaint with the Employment Development Department (EDD)
To establish your status as an employee for purposes of unemployment, disability, and paid family leave benefits, file a "Request for Determination of Employment Status" (Form DE 230) with the EDD. This will trigger an EDD investigation into the employer for unpaid payroll taxes.
Step 4: File a Report of Labor Law Violation
You can also file a confidential "Report of a Labor Law Violation" online with the Labor Commissioner’s Office. This action reports the employer’s illegal practice to the state, which may trigger a wider investigation, and protects your identity. This is different from a wage claim and does not result in a direct payment to you.
Important details and nuances:
Under California’s “ABC test,” a worker is presumed to be an employee unless the employer can prove all three of the following: (A) the worker is free from the control and direction of the hiring entity; (B) the worker performs work that is outside the usual course of the hiring entity’s business; and (C) the worker is customarily engaged in an independently established trade or business. It is illegal for an employer to retaliate against you for reporting misclassification.
Warnings and limitations:
Be aware of the strict deadlines (statutes of limitations) for filing claims, as missing them can permanently bar you from recovering wages. State agency investigations can be very slow, often taking more than a year to resolve.
This is general information and does not constitute legal advice. For complex situations or to discuss filing a private lawsuit, which may provide for additional penalties, you should consult with a qualified California employment attorney.
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Disclaimer:
This information is for general guidance only and should not be considered as legal advice. Please consult with a qualified attorney for specific legal matters.
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Updated: August 14, 2025
Employment Law
Worker rights, wages, and employment regulations
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