In the fast-paced world of technology, IT professionals often find themselves working long hours—sometimes far beyond the standard 40-hour workweek. But when employers misclassify IT contractors as exempt employees, it can mean missing out on legally earned overtime pay. If you’re an IT worker who’s been labeled “exempt” or “independent contractor” but still work under your employer’s control, you may be owed substantial back pay.
Here’s what employees in the tech industry need to know about misclassification, how to identify it, and how to recover unpaid overtime.
What Is Employee Misclassification?
Employee misclassification occurs when an employer labels a worker as:
- An exempt employee (who is not entitled to overtime), or
- An independent contractor (who is not technically an employee at all),
…even though the nature of the job meets the legal criteria for a non-exempt employee, who is entitled to overtime and other protections.
This is particularly common in IT roles where workers are told they are “salaried” or “contractors,” even while working full-time hours under close supervision.
Common Signs of Misclassification in IT Roles
Just because your title includes “Engineer” or “Developer” doesn’t mean you’re exempt from overtime. Look for these red flags:
You May Be Misclassified If:
- You do not manage other employees or departments.
- You do not have independent discretion over major business decisions.
- You are required to follow strict schedules and workflows dictated by your employer.
- Your work primarily involves routine technical tasks, not high-level system design or policy-making.
- You are paid a flat salary, regardless of how many hours you work.
In California, titles don’t determine exemption status—duties and control do.
Why Misclassification Happens in the Tech Industry
Employers often misclassify IT workers either unintentionally or to reduce payroll costs. By labeling an employee “exempt” or a “contractor,” the employer can avoid:
- Paying overtime
- Contributing to workers’ compensation and unemployment insurance
- Providing meal and rest breaks
But that cost-cutting measure can violate state and federal wage laws—and lead to serious penalties for employers.
Your Right to Overtime Pay
Under California labor law, non-exempt employees are entitled to:
- 1.5x pay for hours worked over 8 in a day or 40 in a week
- Double pay for hours over 12 in a day or over 8 on the seventh consecutive day of work in a week
- Meal and rest breaks, or compensation if denied
If you’ve been misclassified and denied these benefits, you may be entitled to unpaid wages plus interest, penalties, and legal fees.
How to Prove Misclassification
Proving your claim often comes down to showing how your job actually functions. Helpful evidence includes:
- Job descriptions and duties
- Timesheets, emails, or project logs showing hours worked
- Payroll records and pay stubs
- Employment contracts or classification notices
An experienced employment attorney can help gather and present this evidence to support your claim.
What You Can Recover
If your employer misclassified you, you may be eligible to recover:
- Unpaid overtime wages
- Interest on back pay
- Penalties for wage statement violations
- Compensation for missed breaks
- Attorney’s fees and court costs
In some cases, you may also be able to pursue a class action lawsuit if other IT workers were similarly misclassified.
Speak With an Employment Law Attorney Today
Tech employers don’t get to decide whether you’re exempt—California law does. If you suspect you’ve been misclassified and denied overtime, PLBH can help you fight back. Our team is experienced in wage and hour violations for IT professionals and can guide you through every step of your claim.
Call (800) 435-7542 today to schedule a free, confidential consultation. Let us help you recover the pay you’ve rightfully earned.