Employee Misclassification Lawyer in Philadelphia

Employee-Side Representation for Independent Contractor & Overtime Exemption Claims

Misclassification strips workers of wages, overtime, and benefits they’ve already earned. At Goodley McCarthy LLC, we represent Philadelphia workers on the employee side of misclassification disputes, whether they’ve been labeled independent contractors to avoid overtime obligations or placed in a salary category that doesn’t hold up under the law. Our founding partners, James E. Goodley and Ryan P. McCarthy, grew up in the Mid-Atlantic region and have spent their careers on one side of these cases: yours.

We handle both individual misclassification claims and large-scale collective actions under federal, Pennsylvania, New Jersey, New York, and D.C. law. That range matters. A settlement we reached in In re Vox Media Inc. Wage and Hour Litigation covered more than 500 class members across three related independent contractor misclassification suits. Workers who think their situation may not be worth pursuing often find otherwise.

If you believe you’ve been misclassified, contact us at (215) 273-3491 for a free consultation. Time limits under the FLSA and Pennsylvania law can narrow the back pay period you may be able to recover, so speaking with an attorney early matters.

Two Types of Misclassification Philadelphia Workers Face

Misclassification takes two common forms. The first is independent contractor misclassification, where an employer labels a worker a contractor to avoid paying overtime, benefits, and payroll taxes. This is widespread in the gig economy, package delivery, construction, and media industries. Signing an independent contractor agreement doesn’t settle the question. Under federal and Pennsylvania law, the actual working relationship controls, not the contract label.

The second form is overtime exemption misclassification. Under the Fair Labor Standards Act, an exemption requires both a salary of at least $684 per week and a primary duty that qualifies under a recognized exemption category. A salary alone doesn’t exempt a worker from overtime. Assistant managers, construction supervisors, and healthcare workers are frequently misclassified as exempt when their actual day-to-day duties don’t qualify. Our results reflect both types: our $1.15 million settlement in Carusillo et al. v. FanSided Inc. et al. covered more than 200 workers misclassified as independent contractors under the FLSA and New York Labor Law.

Signs You May Be Misclassified as an Independent Contractor

Courts apply an “economic reality test” under the Fair Labor Standards Act (FLSA), asking whether a worker is economically dependent on the employer rather than in business for themselves. No single factor is dispositive, but several practical indicators matter.

Common indicators of misclassification include:

• You work primarily or exclusively for one company on an ongoing basis rather than taking projects from multiple clients
• The company sets your hours and assigns your tasks rather than leaving those decisions to you
• The company provides equipment, tools, or a workspace you rely on to do the job
• Your income depends almost entirely on that employer rather than on a business you independently operate

If that description fits your situation, you may have been misclassified regardless of what your contract says.

What Misclassification Actually Costs a Philadelphia Worker

The financial harm is concrete. Misclassified workers may be denied overtime pay at 1.5 times their regular rate for hours over 40 in a workweek. They may not qualify for unemployment insurance if work dries up, and they may not be covered by workers’ compensation if they’re injured. They also may pay 15.3% of wages in Social Security and Medicare taxes instead of the 7.65% share employees pay. Add excluded health benefits and retirement contributions, and the gap between what a misclassified worker receives and what they may be legally owed can be substantial.

Call (215) 273-3491 or reach us through our online contact form. If you prevail, the FLSA and WPCL may allow recovery of attorney fees, so pursuing a claim may involve no upfront cost to you.