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EDD misclassification claim - how to report hours when I never tracked them as 1099 contractor?

I just discovered I might have been illegally misclassified as a 1099 contractor instead of an employee and need advice on filing with EDD. My situation: I worked for a small company that paid me a set amount yearly as a contractor, but my attorney says I should've been classified as an hourly employee with overtime. The problem is I NEVER tracked my hours because I thought I was on salary. I regularly worked 60+ hour weeks (nights, weekends) but have zero documentation of exact hours - just emails and texts proving tasks and deadlines. If I file a misclassification claim with EDD, I'm perfectly fine just claiming 40 hours/week even though I worked way more. How do I handle this with EDD without committing perjury? Can I just say "I worked at least 40 hours weekly but didn't track exact hours"? Has anyone gone through a similar misclassification claim? Update: To clarify, when I was hired, the owner told me I'd be a contractor for the first year (paying me $62,000 annually), then would become an employee after that. My attorney says this arrangement was illegal from the start - I should've been classified as an employee from day one since I was under direct supervision, used company equipment, and had no control over my schedule.

You're in a common situation with misclassification. EDD understands people often don't track hours when they're told they're "contractors" or "on salary." When you file, explain exactly what you said here - you were told you were a contractor, worked at minimum 40 hours weekly but often more, and didn't track exact hours because you weren't told to. Be prepared with evidence that shows you were misclassified (emails showing your boss controlled how/when you worked, any performance reviews, documents showing you used their equipment, etc). EDD will investigate the misclassification itself - they care more about that than exact hours. I went through this in 2024 and won my case. I estimated my weekly hours based on projects/deadlines and EDD accepted that.

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Thank you! This really helps calm my anxiety. I definitely have emails showing I was directly supervised, had to work specific hours, and used their equipment. Did you have to get a wage audit done or did you just estimate hours on the claim form?

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u should get all the $$$$ you can!!! thats wage theft they did to you! my friend got backpaid for like 2 yrs when her boss did the 1099 thing to avoid paying taxes. dont settle for 40hrs if u worked 60!!!

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I hear you, but I'm more concerned about being able to prove the hours. I just don't want to make claims I can't back up with documentation.

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This happens all the time in California. Here's what you need to know: 1. EDD uses the "ABC test" to determine if you were misclassified (established in the Dynamex case and codified by AB5) 2. For your hours, you need to provide your best good-faith estimate. You won't be committing perjury by stating "I regularly worked 40+ hours weekly but did not maintain hourly records as I was told I was a contractor paid on salary basis." 3. If EDD determines you were misclassified, they'll conduct a wage audit where they review all available evidence to determine wages owed. 4. The burden actually shifts to the employer to prove you weren't an employee - not on you to prove every hour. Your texts and emails will help establish the employment relationship. While you technically might be entitled to overtime for those extra hours, if you can't reasonably estimate them and are comfortable with 40 hours, that's your choice.

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Xan Dae

Question - does this mean the OP's former employer will now have to pay all those back taxes to EDD that they avoided by misclassifying? Seems like there should be a penalty for employer who do this.

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Yes, if EDD determines there was misclassification, the employer will be responsible for: - Unpaid employment taxes plus interest - Potential penalties for willful misclassification - Their portion of Social Security and Medicare that should have been paid - Potentially unemployment insurance contributions California takes misclassification very seriously since AB5, and penalties can be significant. The employer could face additional penalties if the Labor Commissioner gets involved.

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Thanks for the helpful responses! Follow-up question: how long does the EDD misclassification claim process usually take? Should I expect this to take months to resolve?

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haha good luck i filed a misclassification thing last year its been 9 months and still pending!!!!! edd is hopeless honestly.

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If you need to actually speak with someone at EDD about your misclassification case, I highly recommend using Claimyr. I spent weeks calling EDD about my misclassification claim and couldn't get through. Claimyr got me connected to an actual EDD representative in under 20 minutes. They basically call EDD for you and put you in the callback queue. Saved me so much frustration! You can see how it works at claimyr.com or check their demo video: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km

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DO NOT CLAIM JUST 40 HOURS if u worked more!!! My brother went thru this an when EDD ruled in his favor they calculated LOST OVERTIME + PENALTIES which was huge $$$. Your employer STOLE from you. In my brothers case it took about 5 months but he got backpay for all overtime at time-and-half rate plus interest!!!

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That's interesting - but how did your brother prove his overtime hours? Did he have documentation or did EDD just take his word for it?

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He had some proof from work emails showing times he sent stuff late at night + his door access card records + phone logs. But for alot of it he just gave estimates based on projects and deadlines and EDD accepted that! They mainly wanted proof the RELATIONSHIP was employment not 1099 (who controlled the work, who provided equipment, etc).

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Regarding your timeline question - EDD misclassification claims typically take 3-6 months, but can take longer if: 1. Your former employer contests the claim (very likely) 2. EDD needs additional documentation from either party 3. Current EDD backlog issues (which fluctuate throughout the year) Be prepared for this to potentially take 6+ months to resolve fully. Make sure to respond to any EDD requests for additional information promptly to avoid further delays. Depending on the determination, you may be eligible for: - UI benefits if you're currently unemployed - Recovery of employer-side payroll taxes - Penalties for willful misclassification You might consider also filing a wage claim with the DLSE (Division of Labor Standards Enforcement) alongside your EDD claim to address any overtime/meal break violations.

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Xan Dae

Is there a statute of limitations on this? Like how far back can someone claim misclassification with EDD?

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My compnay did this to me to they call you "contractor" but treat you like employee its total BS. the problem is proving it! took me FOREVER to get EDD to even look at my claim lol. the 40 hour thing is smart cause easier to prove. just tell them you worked AT LEAST 40 per week but your boss never had you track hours cause ur "salary" (which is another lie they told u

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Did you eventually get a resolution with EDD? How did they determine your hours?

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ya after like 5 months they ruled i was employee not 1099. they based it on my emails and text msgs that showed i was being micromanaged and having to ask permission for everything. for hours i just had to give a sworn statement saying what my typical schedule was like. the burden shifted to employer to DISPROVE me and they couldnt

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One final thing to consider - when you file your claim, you'll likely need to complete the DE 230 (Employee Questionnaire for Unemployment Insurance Benefits Eligibility). Be very detailed about your working conditions that show you were an employee, such as: - Who controlled how and when you worked - Whether you could accept/decline assignments - If you used their equipment/facilities - If you were integrated into their business operations - Whether you worked exclusively for them - If they trained you or required specific methods These factors are crucial for the ABC test. For the hours issue, there's usually a section where you can explain special circumstances - this is where you should note that you weren't instructed to track hours since you were told you were a contractor/on salary, but that you consistently worked at least 40 hours weekly. Don't hesitate to attach a separate sheet with additional explanation if needed.

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This is extremely helpful, thank you! I'll be very detailed about all those factors when I complete the form. I definitely check all the boxes for being an employee - used their equipment, couldn't take other jobs, they controlled my schedule completely, etc. I just wasn't sure how to handle the hours part.

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