{"id":646,"date":"2026-10-16T04:58:30","date_gmt":"2026-10-16T04:58:30","guid":{"rendered":"https:\/\/kewlegal.com\/resources\/problem-employees-florida-business-owner-guide\/can-you-give-me-an-example-of-employee-misclassification\/"},"modified":"2026-10-27T14:54:01","modified_gmt":"2026-10-27T14:54:01","slug":"can-you-give-me-an-example-of-employee-misclassification","status":"publish","type":"page","link":"https:\/\/kewlegal.com\/resources\/problem-employees-florida-business-owner-guide\/can-you-give-me-an-example-of-employee-misclassification\/","title":{"rendered":"Employee Misclassification Example for Miami Businesses"},"content":{"rendered":"\n
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Employment Law for Employers | Coral Gables and Sunny Isles Beach<\/p>

Employee Misclassification Example for Miami Businesses<\/h1>

A practical look at how a common worker arrangement can be classified differently than the label on the paperwork, and what Miami business owners can review. Kristina E. Wilson, KEW Legal, Coral Gables.<\/p>

Schedule a free first consultation<\/a><\/div>
Schedule a free first consultation<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n

By Kristina E. Wilson \u00b7 Published October 16, 2026<\/p>\n\n

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Can you give me an example of employee misclassification? A common one is a worker paid on a Form 1099 who works set hours, is trained and supervised by the owner, uses the owner’s equipment, and does only the company’s work. The label on the paperwork doesn’t decide the question. This guide explains how the tests work.<\/p>\n

A Plain Example of Employee Misclassification<\/h2>\n

Misclassification happens when a business calls a worker a contractor, but the working relationship looks like employment. Can you give me an example of employee misclassification? Yes. Here is a hypothetical.<\/p>\n

A small cleaning company in Miami-Dade County pays Maria a flat weekly amount and reports it on a 1099 each year. The owner sets her Monday-through-Friday schedule, trains her on the company’s checklist, supplies the vacuums and cleaning products, and assigns every job. Maria can’t take other clients without asking first. She has no business name and no other income source.<\/p>\n

On paper, Maria is a contractor. In practice, the owner controls when, where, and how she works, and she depends on the company for her living. That gap is the heart of misclassification.<\/p>\n

The label doesn’t settle the matter. Under the Fair Labor Standards Act, labeling employees as \u201cindependent contractors\u201d does not make these protections inapplicable (Department of Labor regulation, section 795.105<\/a>).<\/p>\n\n

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If you're unsure whether a worker's label is right, you don't have to sort it out alone; reach out to KEW Legal to talk through the facts. Talk it through with our team — the first consultation is free, confidential, and carries no obligation.<\/p>

Get a free consultation<\/a><\/div>
Get a free consultation<\/a><\/div><\/div>\n<\/div>\n

How Courts and Agencies Look at the Same Facts<\/h2>\n

The IRS and the U.S. Department of Labor ask related but different questions, so the same facts can lead to different answers.<\/p>\n

Behavioral control asks whether the business directs how the work gets done, such as through training and set schedules. Financial control looks at the money side of the relationship. IRS guidance on independent contractors<\/a> explains this control test. For Maria, the training, schedule, and supervision point toward employee status.<\/p>\n

The Department of Labor applies an economic reality test under the FLSA. The question is whether a worker is economically dependent on the business or is in business for themself. The FLSA economic reality rules<\/a> call this a totality-of-the-circumstances review, and no single factor decides it. Equipment the owner supplies and control over pricing both count.<\/p>\n

Florida adds its own rules. Under Florida reemployment tax law<\/a>, employment includes an individual who is an employee under the usual common-law rules. Each analysis is separate, so the answer under one may differ from another.<\/p>\n

Other Patterns Florida Businesses Should Check<\/h2>\n

Three other arrangements are worth checking against the tests above. Each is a pattern to review, not a finding about any business.<\/p>\n

The long-running part-timer.<\/strong> A worker who started with occasional help now works set shifts every week, and the work is central to daily operations. The 1099 never changed, but the job did.<\/p>\n

The shell LLC.<\/strong> A worker forms an LLC, yet the owner who runs the business still directs the daily work. Forming an entity doesn’t, by itself, change who controls the work. The facts about direction and control matter more than the paperwork.<\/p>\n

The commission-only salesperson.<\/strong> A salesperson paid only on commission has a set schedule, an assigned territory, and sales methods the company dictates. Under the FLSA control factors, control over rates and how the services are marketed is relevant.<\/p>\n\n

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What Misclassification Can Cost a Business<\/h2>\n

Misclassification can create tax, wage, and workers’ compensation exposure. The size of any claim depends on the facts. Here are the general categories.<\/p>\n