Misclassified Michigan Workers are Owed Overtime Pay by Law

Misclassified Michigan Workers are Owed Overtime Pay by Law

In a recent BW win for workers, the Eastern District of Michigan judge ruled that phlebotomists who are assigned to draw blood at Michigan hospitals are employees under the law, rather than “independent contractors”, and are therefore entitled to receive time-and-half for overtime hours.  Defendant Mobile Phlebotomy Central Michigan (MPCM) fought back and argued that they were not required to pay overtime. Defendants said even if the phlebotomists were employees, they should be considered employees of the hospital and not MPCM who paid them and staffed them at hospitals around Michigan.

BW Attorney Kelly McClintock stood her ground and stood up for workers fighting to get the overtime pay they are owed under the law. In a ground breaking Order and Opinion, the District Court for the Eastern District of Michigan confirmed that Plaintiffs and other workers were in fact employees as a matter of law, and are therefore entitled to time-and-a-half overtime pay when they work more than 40 hours a week. That’s the law at work.

This type of wage theft is all too common. Businesses and vendors use the desperation of marginalized communities to generate profit. By re-labeling employees to “independent contractors”, employers illegally seek to reduce costs related to unemployment insurance and workers’ compensation, and even avoid obligations to pay overtime. The protections of the law are not dependent on the company’s pick of job titles. Persons designated as “independent contractors” and other workers wrongly deprived of overtime pay have a legal right to recover the wages stolen through illegal misclassifications by their employers.

Blanchard & Walker lawyers have been fighting for decades to secure the rights of installers, cable technicians, security guards and all workers who have been deprived of overtime pay by the use of “independent contractor” labels.  Still, we are amazed by the depth of the problem and astonished to hear how extreme and widespread the abuse of “independent contractor” classifications has become. 

How do I know if I am misclassified and owed overtime pay?

Even if they are labeled “independent contractors”, misclassified employees are still employees under the law and still owed minimum wage and overtime pay. The courts have explained it as a question of whether “the work done, in its essence, follows the usual path of an employee.”  They typically consider the following factors to answer the question:

  1. Is the work an integral part of the employer’s business?
  2. Are you paid based on hours worked? (or does your opportunity for profit or loss depend on expertise and judgment)
  3. Does your employer provide tools and uniforms? (or does the worker investment more in their own tools and equipment compared to the employer’s investment)
  4. Can the work be done without specialized degrees or certifications?
  5. Is the work relationship long term and steady? (or indefinite from day to day)
  6. Does your employer control how the work is performed?

If you answered yes to any of the above, you may be entitled to additional wages, such as time-and-half for all overtime hours.  People who wish to request a confidential consultation, can reach out through our online form.

If you’re not sure where or when to report wage theft, start by contacting an employment attorney with wage theft enforcement experience. Michigan employers who violate the law are liable to pay employees their full Michigan minimum wage of 13.73/hour, plus time-and-a-half for overtime, along with potential penalties, liquidated damages and attorneys’ fees.