Misclassification is the practice of an employer improperly classifying employees as independent contractors.   

Misclassification may illegally deprive workers of basic rights, protections, and benefits quaranteed to employees such as the right to be paid the minimum wage, the right to overtyime pay, time and mode of pay protections, the protection against illegal deductions from pay unemployment compensation, temporary disability benefits, family leave insurance benefits, workers' compesnsation, family leave and earned sick leave.

Often when workers are paid in cash "off the books", it may be a method to hide misclassification or other employment related legal obligations. 

See attached poster for more information.