How To Deal With Discrimination As an Independent Contractor in California?

Being an independent contractor in California can be both rewarding and challenging. However, with the freedom to choose projects and manage your own time comes the responsibility of requiring fair treatment in the workplace. Unfortunately, discrimination is a persistent issue that affects many professionals, regardless of their employment status. This may leave you wondering how to deal with discrimination as an independent contractor in California.

By understanding how independent contractors in California can handle discrimination, you can better protect yourself from unfair treatment. Most importantly, just because you are paid as an independent contractor does not mean you are legally considered to be one. Many independent contractors are misclassified and should legally be employees. They are entitled to full employment rights no matter how they are classified.

Understanding Your Rights

Workplace discrimination is unfortunately common, even this far into the 21st century. In the 2024 fiscal year, the United States Equal Employment Opportunity Commission received more than 88,000 workplace discrimination complaints.

To tackle discrimination as an independent contractor, you must be aware of your rights. The California Civil Rights Department is the primary state agency responsible for enforcing civil rights laws, including the Fair Employment and Housing Act (FEHA).

Under FEHA, independent contractors are protected from discrimination based on their race, color, national origin, ancestry, religion, sex, disability, age, and other specified categories. As an independent contractor, you have the right to work in an environment free from discrimination and harassment.

Differences in Discrimination Protections for Independent Contractors vs. Employees

California anti-discrimination laws are some of the most robust in the country, and workers are generally shielded against discrimination based on protected classes regardless of whether they are independent contractors or employees. However, there are some major differences between the two when it comes to specific protections.

Employees are afforded more comprehensive protections under anti-discrimination laws than independent contractors. Employees can file claims in response to harassment or discrimination based on any protected class. They can also act for an employer’s failure to provide reasonable accommodation for a disability or pregnancy.

Furthermore, employees are entitled to certain protections regarding hours and wages. Employees must be paid at least the minimum legal wage, and they must be paid for all their working time. They are entitled to meal and rest breaks, reimbursement for work-related expenses, and appropriate family medical leave if they qualify for it.

If an employer violates any of these entitlements, an employee may act against them, including filing internal complaints, complaints with the California Civil Rights Department or the California Labor Commissioner’s Office, or official civil claims in the Superior Court of California.

Independent contractors are afforded some of these same protections, but they usually cannot file any claims related to hours or wages because they are not employees. Independent contractors are not entitled to reasonable accommodations for disabilities or pregnancy, nor are they entitled to overtime pay, sick pay, scheduled rest breaks, or expense reimbursement unless specifically stated in the contract they provided to their client.

Both employees and independent contractors are protected against harassment based on race, religion, sex, gender, or any other protected class as defined in the Fair Employment and Housing Act. Therefore, if you are working for a client as an independent contractor and experience harassment based on your race, gender, religion, or another protected attribute, you can file a claim against that client.

Misclassification

It may be surprising to learn that some employees who believe they are independent contractors are, in fact, employees in the legal sense. Sometimes, employers misclassify their employees as independent contractors, either through genuine ignorance of the nature of the relationship or for the purposes of avoiding certain taxes.

In an employer and employee relationship, employers are required to pay taxes for each employee. They are also required to provide things like overtime pay, sick pay, and scheduled breaks. To avoid these expenses and inconveniences, sometimes employers misrepresent their relationships with their employees, classifying them as independent contractors instead.

No matter what employers or the people who work for them may believe, an employer-employee relationship may still exist. A person could believe themselves to be an independent contractor when they are, in fact, an employee based on the practical nature of the relationship.

It can sometimes be difficult to determine whether a person is legally an employee or an independent contractor. The following are some considerations to keep in mind when making that determination: 

• Time control. Does your client and/or employer have control over your time? If the entity you work for as an independent contractor can dictate when you work, how long you work, whether you can take breaks, and how you spend your work time, that is characteristic of an employee relationship.
• Equipment. If you use the employer’s equipment rather than your own, it is more likely that the relationship is an employee relationship.
• Training. If your employer requires you to go through training exercises or if they are teaching you entirely new skills that you need to do the work, you are more likely to be an employee than an independent contractor. In an independent contractor relationship, the worker may receive project specifications from a client but should not need training.
• Pay structure. Independent contractors are usually paid on a project basis. If you receive a regular salary at the same time every pay period, or if you are paid on an hourly basis, it is more likely that you are a de facto employee.
• Indefinite work. Because contractors are usually paid by the project, contract work usually has a defined end time at which a new project might commence, or the relationship might end. If your work is expected to go on indefinitely, you may be an employee.

If you feel that an employer has misclassified you, calling you an independent contractor while exerting the control associated with an employer-employee relationship, you may be entitled to unpaid wages, including overtime, sick pay, unpaid breaks, and unpaid taxes.

You can claim your unpaid compensation by filing a claim with the California Labor Commissioner’s Office. It is recommended to submit your claim with any supporting documentation you can collect, including time logs, written communications, and anything else that might help support your claim and demonstrate the employer-employee relationship.

Recognizing Discrimination

It is not always easy to immediately identify discrimination in the workplace. Sometimes incidents are clear-cut, but other times, patterns of behavior are more subtle. Discrimination can take many forms, including:

• Unequal treatment. Discrimination can occur when you’re treated differently from other independent contractors due to your protected characteristics, such as race, religion, sex, or age. This could involve being excluded from projects, receiving lower pay, or being denied opportunities for growth or advancement that are offered to others with similar qualifications.
• Harassment. Harassment is unwelcome conduct based on a protected characteristic that creates a hostile work environment. Examples include offensive jokes, derogatory comments, inappropriate gestures, or displaying offensive images related to a protected characteristic. Harassment can be perpetrated by clients, colleagues, or even supervisors and can significantly impact your mental well-being and job performance.
• Retaliation. Retaliation occurs when you experience adverse consequences after reporting discrimination or supporting someone else’s complaint. This can take the form of termination, demotion, a reduction in pay or hours, being excluded from projects, or even being subjected to further harassment. Retaliation is illegal and should be reported immediately.

If you are unsure whether the treatment you have experienced qualifies as discrimination, you can consult a knowledgeable workplace discrimination attorney. An experienced lawyer’s deep and comprehensive knowledge of California’s anti-discrimination laws becomes an invaluable asset when pursuing justice.

Taking Action

Individuals who experience workplace harassment may feel that they have few options for seeking justice, but although the process may seem daunting, legal solutions are well within reach. Once you’ve identified discrimination, there are several steps you can take to address it:

• Communicate your concerns. The first step is to address the issue directly with the person involved or their supervisor. This can be done informally, through a conversation or email, detailing the discriminatory behavior you’ve experienced and requesting it to stop. Alternatively, you can submit a formal written complaint to the appropriate party, such as a project manager or human resources representative, outlining the issue and requesting intervention.
• Review contracts and agreements. Assess your existing contracts and agreements to align provisions for equal treatment and protection against discrimination. Look for clauses that explicitly prohibit discriminatory practices or outline steps for addressing such behavior. If necessary, consult with a legal professional to revise your contracts or draft new ones that provide robust protection against discrimination.
• Collect evidence. Maintain a detailed record of any incidents of discrimination, including dates, times, locations, and the names of those involved. This documentation will be crucial if you decide to pursue legal action or file a formal complaint. In addition to written records, save any emails, texts, or other communications that demonstrate discriminatory behavior. If possible, gather statements from witnesses who observed the discriminatory actions.
• Seek internal resolution. Before taking legal action, explore whether the issue can be resolved internally within the organization or with the client. Present your evidence to the appropriate party and request a thorough investigation. If the organization or client takes corrective action, this may resolve the issue without anything further.
• Contact an experienced employment lawyer. If the issue persists or escalates, hire a discrimination lawyer. Remember that there is a deadline for filing a complaint. It’s essential to act promptly to file your complaint within the appropriate timeframe.

What Happens After I File a Discrimination Complaint in California?

Once you have filed a discrimination complaint with the California Civil Rights Department, they will investigate the issue. The Civil Rights Department may request additional information or evidence from you and your employer. If the investigation reveals discrimination, they will attempt to resolve the issue through a settlement between you and the employer, or they may file a legal claim on your behalf.

If the court finds discrimination, remedies can include damages, such as back pay, reinstatement, and monetary awards. The Civil Rights Department will also require the employer to take corrective measures to avoid similar situations in the future. We strongly suggest that you do NOT go directly to the Civil Rights Department without first contacting an experienced employment lawyer.

FAQs

Are Independent Contractors Protected From Discrimination in California?

Yes, independent contractors are protected from discrimination in California. The Fair Employment and Housing Act (FEHA) covers independent contractors in the state, safeguarding them against discrimination based on race, color, national origin, ancestry, religion, sex, disability, and age. Independent contractors need to be aware of their rights under FEHA so they can recognize discrimination and take appropriate action if they experience it in their professional endeavors.

What Is the Misclassification of Independent Contractors in California?

Misclassification of independent contractors in California occurs when a worker is incorrectly classified as an independent contractor rather than an employee. This can lead to denying various employee rights and benefits, such as minimum wage, overtime pay, meal and rest breaks, and workers’ compensation coverage. California’s Assembly Bill 5 (AB 5) and subsequent amendments have introduced the “ABC test” to determine if a worker should be classified as an employee or an independent contractor, making it more challenging for employers to misclassify workers.

How Can I Stay Informed About My Rights and the Laws Protecting Me From Discrimination as an Independent Contractor?

Staying informed about your rights and laws protecting you from discrimination as an independent contractor starts by attending workshops, webinars, or online training sessions offered by organizations like the California Civil Rights Department or the US Equal Employment Opportunity Commission. Regularly review updates to legislation such as the Fair Employment and Housing Act in California. You can also consult with legal professionals skilled in employment law.

What Happens After I File a Discrimination Complaint in California?

Once you have filed a discrimination complaint with the DFEH, they will investigate the issue. The DFEH may request additional information or evidence from you and your employer. If the investigation reveals discrimination, they will attempt to resolve the issue through a settlement between you and the employer, or they may file a lawsuit on your behalf. If the court finds discrimination, remedies can include damages, such as back pay, reinstatement, and monetary awards. The DFEH will also ensure the employer takes corrective measures to avoid similar situations in the future. We strongly suggest that you do NOT go directly to the DFEH without first contacting an experienced employment lawyer.

How Much Does It Cost to Hire a Workplace Discrimination Lawyer in California?

Attorney costs vary widely from practice to practice. Even within small geographical areas, one can find a range of price points for attorney services. Final attorney fees depend on the complexity of a given case, the willingness of a defendant to settle, and other factors unique to individual situations. Some attorneys take discrimination cases on a contingency basis, meaning they do not require up-front fees, instead receiving a percentage of any settlement they secure.

Hire a Discrimination Lawyer

If you are an independent contractor in California and believe you have experienced discrimination, the attorneys at Shirazi Law Firm, P.C., can help. Our experienced lawyers have been serving clients in California for 15 years. We will evaluate your case and provide legal guidance to help you protect your rights. Contact us today for a consultation.