Gig Economy Overtime Rights: When Uber, DoorDash, and Freelance Workers Are Entitled to Overtime Pay in New York

When Your Gig Work Becomes More Than a Side Hustle: Understanding Overtime Rights for Uber, DoorDash, and Freelance Workers in New York

The gig economy has transformed how millions of Americans earn a living, but for many workers in New York, the promise of flexibility has come with a hidden cost: the loss of traditional employment protections, including overtime pay. Overtime pay is another frequent issue, especially for workers who meet employee criteria but remain classified as contractors on paper. State and federal overtime laws protect employees, but if an app-based gig imposes strict schedules, quotas, or working hours—especially if it controls the bulk of your income—you may be owed more than standard pay.

The Classification Challenge: Employee vs. Independent Contractor

The heart of gig worker overtime rights lies in worker classification. Under US federal and most state labor laws, independent contractors are not entitled to wage and labor protections guaranteed to employees, such as minimum wage, overtime pay, unemployment insurance, workers’ compensation, and paid sick leave. However, many gig workers who are classified as independent contractors may actually be entitled to employee protections under the law.

In New York, courts and regulatory agencies use the “ABC Test” among other methods to assess whether someone is truly independent or an employee under the law. The test examines how much control a company exerts over your schedule, pay, work methods, and degree of independence. While States like California and the Department of Labor use the ABC Test to determine worker status, while Common Law is the method for both New York and the IRS. The Common Law Test, used by the IRS, New York, the District of Columbia, and 17 other states, determines worker status by examining behavioral control, financial control, and the parties’ relationship for each job.

Signs You May Be Misclassified

Many gig workers don’t realize they may actually be employees entitled to overtime pay. Signs of misclassification in gig jobs often include: Mandatory uniforms or branded equipment supplied by the company. If a company dictates the specifics of your work, sets nearly every policy, or limits your ability to work elsewhere, you may have been wrongly labeled as an independent contractor.

Consider these red flags that suggest you might be an employee rather than an independent contractor:

New York’s Evolving Protections

New York has been at the forefront of expanding gig worker protections. In New York City, the Taxi & Limousine Commission (TLC) sets a minimum wage for for-hire vehicle drivers, creating a wage floor that helps protect drivers from underpayment. Additionally, The new pay scale in New York City starts at $17.96 per hour on July 12, and will increase to $19.96 per hour by April 2025. That’s a big step forward from the $7.09 per hour delivery service workers are currently paid before tips, according to DCWP’s findings.

The Freelance Isn’t Free Act (FIFA) provides powerful protections for gig workers performing freelance work in New York City. This law gives freelancers the right to written contracts, timely payment, and protection from retaliation.

When Gig Workers Are Entitled to Overtime

Overtime laws under the FLSA generally do not apply to independent contractors, but misclassified workers may be entitled to overtime pay. Gig workers who regularly work long hours might argue they should be considered employees and therefore are entitled to overtime pay. If a court or labor agency determines that a gig worker has been improperly classified as an independent contractor, the employer could be liable for unpaid overtime wages.

In New York, New York overtime laws are in place to protect employees from being overworked and underpaid. Under these laws, employees who work more than 40 hours in a workweek are entitled to receive time-and-a-half pay for each additional hour worked.

The Financial Impact of Misclassification

The stakes are high for misclassified workers. A 2025 study by the Economic Policy Institute found that contractors in commonly misclassified roles — like construction and trucking — lose between $19,000 to $21,000 annually in pay and benefits compared to correctly classified employees. For companies, this means potential liability for thousands of dollars in unpaid wages, benefits, and penalties per misclassified worker.

For employers found to have misclassified workers, Employers found to have misclassified workers may be liable for back pay, unpaid overtime, benefits, payroll taxes, penalties, and attorney’s fees.

Taking Action: Your Rights and Options

If you believe you’ve been misclassified as an independent contractor when you should be an employee entitled to overtime pay, it’s crucial to act quickly. When it comes to your employment rights, however, you need to act as soon as possible, because your rights are subject to strict time limits and procedural requirements.

Working with an experienced unpaid overtime lawyer can help you understand your rights and pursue the compensation you’re owed. The Howley Law Firm, located in New York City, specializes in employment law and has extensive experience helping workers recover unpaid wages and overtime.

Our significant cases include: an $80 million victory for middle managers in a race discrimination class action; a labor arbitration victory that gave NYC police officers higher raises than firefighters for the first time in 100 years; a $3.2 million victory for nurses for prevailing wage underpayments; a $2.4 million victory for waiters and bussers for unpaid overtime and tips; a million dollar settlement for a live-in nanny in a sexual harassment case.

Looking Forward: The Future of Gig Work

The legal landscape for gig workers continues to evolve. Many experts predict the emergence of hybrid classifications — a “third category” of worker who retains independence but receives partial benefits and protections. Some states, including New York, have explored portable benefit systems or sector-specific frameworks to adapt to modern work realities.

As the gig economy continues to grow, so does the recognition that workers deserve fair compensation and basic protections, regardless of how they’re classified. We focus on representing individuals in the areas of employment rights in New York and whistleblower rewards nationwide. The Howley Law Firm is committed to helping gig workers understand their rights and fight for the compensation they deserve.

If you’re working for Uber, DoorDash, or any other gig platform and believe you may be entitled to overtime pay, don’t wait. Contact an experienced employment attorney to discuss your situation and explore your options for recovery.