How Misclassification Can Hurt a Houston Painter’s Paycheck

One of the most common questions asked of Kennedy Hodges is, “How much does misclassification really hurt my paycheck?”

Many independent contractors believe that if they are getting paid a fair price to fulfill the contract, they do not need to question any of the other tactics the hiring employer is using. But regardless of whether or not you are receiving a fair amount for the contract, if you are being treated more like an employee than a Houston independent contractor, you could be losing out on hundreds of dollars.

Let’s use the example of a Texas home painter. Suppose this painter accepts the bid to paint the first floor interior of a home for $2,500, and agrees to fulfill the contract within four weeks. If he works for 40 hours per week on the home, he is making roughly $15.60 per hour.

As an independent contractor, the painter has the right to set the schedule, work at his own pace, and come and go from the job site as he pleases.

The painter starts the job, and after the first day, the construction company owner tells him that the carpet installers will be ready earlier than expected, and that the painter will have to be done in three weeks instead of four. The owner tells him that he will have to stay late and come in on the weekends until the job is done, but the agreed price will stay the same.

The painter does not know that he is not required to do this, and comes in anyway. Instead of completing the job over four weeks, he works three 55-hour weeks instead. After the job is complete, he collects his $2,500.

Based on the behavior of the owner, the painter should have been classified as an employee. And his overall compensation, assuming he was paid the same $15.60 per hour, would look like this:

$15.60 x 40 = $624

$15.60 x 1.5 = $23.40 (overtime wage)

$23.40 x 15 hours of overtime = $351

$624 + $351 = $975 per week

$975 x 3 weeks = $2,925

So, misclassification caused the painter to lose out on $425 this contract. If this happens every month, the painter could be out as much as $5,000 per year!

Let the Texas fair wage lawyers at Kennedy Hodges, LLP help you determine if you are properly classified as an independently contracted painter in Houston. Call today at 888.449.2068 for a free case evaluation and copy of their book, Ten Biggest Mistakes That Can Hurt Your Wage and Overtime Wage Claim.