Knowing Your Rights as a Misclassified Employee in Nashville
Are you working full-time hours and following company rules while receiving no overtime pay? Your employer might be misclassifying you. That’s more than unfair — it’s often illegal. If you know or suspect this is happening to you, don’t let your employer get away with it. Push back with the help of an experienced employment law attorney in Nashville.
What Employee Misclassification Really Means
Employee misclassification happens when a company mislabels a worker as an independent contractor rather than an employee, often to avoid paying overtime, taxes, and benefits. But if a company controls how and when someone works, that person likely qualifies as an employee. Misclassified workers often lose out on minimum wages, overtime pay, and job protections. The wrong label can cost a worker thousands of dollars in unpaid wages and expose them to unexpected tax penalties.
How Misclassification Affects Overtime Pay
Employers sometimes misclassify workers as exempt to avoid paying overtime. Under federal and Tennessee wage-and-hour laws, exempt employees are generally not entitled to overtime pay, while non-exempt employees must be paid time-and-a-half for all hours worked over 40 in a workweek. Not every misclassification is intentional. But when it happens, employees may be denied overtime compensation guaranteed under the Fair Labor Standards Act (FLSA) and Tennessee law.
So how do you know whether you are properly classified? The FLSA applies specific salary and job-duties tests to determine whether an employee is exempt or non-exempt:
- Exempt employees generally perform executive, administrative, or professional duties and must meet strict salary and duties requirements.
- Non-exempt employees are entitled to overtime pay, regardless of whether they are paid hourly or salary, and often perform operational, technical, or manual job duties.
If you suspect you have been misclassified and denied overtime pay, speaking with a Nashville unpaid overtime lawyer can help you understand your rights and determine whether you are owed back wages.
How the Law Determines Employee vs. Independent Contractor Status
Federal law considers several key factors to determine if someone counts as an independent contractor vs. an employee, including whether:
- The company controls when, where, and how the person works.
- The worker must follow company policies and use company tools.
- The business sets the pay rate rather than letting the worker set their own prices.
- The work performed is a core part of the business, not a separate service.
- The employment relationship lasts long-term, not just project to project.
Federal rules under the Fair Labor Standards Act (FLSA) focus on control and independence. Tennessee applies a similar test that also looks at how much freedom a worker has in their role.
Why Misclassification Hurts More Than Just One Worker
Misclassification doesn’t just hurt a single person. It affects entire communities. When a company avoids paying fair wages or benefits, other businesses feel pressure to cut corners to compete, which can prompt a “race to the bottom.” Workers lose out on job security, health coverage, and retirement options. Some end up paying out of pocket for injuries or payroll taxes. Nashville’s workforce feels the strain when honest employers follow the rules but still lose contracts to those who cheat the system. Over time, this kind of practice drives down wages and makes it harder for misclassified employees in Nashville to build stable lives and support their families.
Consequences Employers Face for Misclassifying Workers
Employers who misclassify workers can face serious legal trouble. They may owe years of unpaid overtime and minimum wages, and face hefty tax bills for unpaid payroll taxes, Social Security, and Medicare. The Department of Labor can also impose civil fines for each misclassified worker. In many cases, misclassification violates both state and federal wage-and-hour laws. Courts can hold employers responsible for years of unpaid wages, along with interest and penalties. If the employer knowingly violated the law, the penalties are more severe.
Speak With a Nashville Misclassification Attorney Today
If you believe you’ve been treated as a misclassified employee in Nashville, an experienced attorney from the Employment and Commerce Law Group can review your case in a free consultation. At our firm, employment law is all we do. With decades of experience handling wage and hour cases across Tennessee, our legal team knows how to spot misclassification, calculate lost pay, and hold employers accountable. Contact us today to learn your legal options.
