Independent contractors do not receive the same legal protections as employees under California labor law. However, that doesn’t mean they are without recourse. Whether an independent contractor can sue under labor laws depends heavily on how the worker has been classified and whether that classification is accurate under state law.

Misclassification of Independent Contractors

One of the most common legal issues arises when a worker has been misclassified as an independent contractor. Under California law, particularly the ABC test outlined in Assembly Bill 5 (AB5), many workers who are labeled as independent contractors actually meet the legal criteria of employees.

• (A) The worker is free from control and direction in the performance of their work.
• (B) The work performed is outside the usual course of the hiring entity’s business.
• (C) The worker is customarily engaged in an independently established trade or occupation.

If a contractor does not meet all three parts of this test, they may be considered an employee under the law and gain employee protections, including the ability to sue for labor violations.

Legal Options for Independent Contractors

Independent contractors may be able to sue for:

• Misclassification: If they believe they were wrongly categorized and denied employee rights such as minimum wage, overtime, or benefits.
• Breach of Contract: If the hiring party violated the terms of their independent contractor agreement.
• Retaliation or harassment: If they suffered unlawful retaliation or harassment, in some cases depending on the nature of the conduct.
• Unpaid Wages: If the contractor was not compensated according to the agreed-upon terms.

What Independent Contractors Cannot Do

Independent contractors typically cannot sue for:

• Wrongful termination (since they are not “employed”)
• Violation of meal and rest break requirements
• Workers’ compensation benefits (unless reclassified as employees)
• Other labor law protections that apply only to employees

Steps to Take

• Evaluate your classification: Speak with an employment attorney to determine if you meet the criteria to be considered an employee.
• Gather documentation: Contracts, payment records, communications, and work instructions can all help determine your classification status.
• File a complaint: Misclassified workers may file claims with the California Labor Commissioner’s Office or pursue a civil lawsuit.

Speak With an Employment Lawyer

If you’re an independent contractor and believe your legal rights have been violated, the first step is determining whether you’ve been misclassified. At California Labor Law Employment Attorneys Group, we help workers understand their classification and explore all legal remedies available. Contact us today for a free consultation. We don’t charge unless we win your case.