When freelancers at Microsoft were reclassified as employees, they sued for retroactive retirement benefits. The reclassification of an injured worker may trigger substantial fines under workers' compensation laws and liability for medical bills and lost wages. Misclassification can even mean criminal penalties under the Fair Labor Standards Act. And if this isn't complicated enough, various agencies and states use different tests to sort their workers. Thus, a worker may be an independent contractor under one law and an employee under another.