Two Sides of the Same Coin: Examining the Misclassification of Workers as Independent Contractors

Abstract

Under current National Labor Relations Boardinterpretations of the National Labor Relations Act, employersmay only be punished for misclassifying their employees asindependent contractors if a separate violation of the NLRA ispresent. As the U.S. economy increasingly focuses on gig work,millions of workers are affected by misclassification, whichresults in lower pay and fewer employment protections.Misclassification also strips the government of billions ofdollars in tax revenue.The NLRB considered the issue of making themisclassification of employees a standalone violation of Section8(a)(1) of the NLRA in the case Velox Express, Inc., yet itdeclined to do so. This decision is not in accord with therealities of the modern gig economy and the changing nature ofthe workplace. This Note argues that the NLRB should findthat standalone violations of Section 8(a)(1) of the NLRA existwhen employers misclassify workers as independentcontractors rather than as employees. Misclassification benefitsemployers while substantially harming employees. Employerswho misclassify their workers should face the repercussions ofan NLRA violation each time they misclassify a worker. Thisstandalone violation would further Congress’s stated purposesfor the NLRA and would provide gig workers with protectionsassociated with the employment relationship

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