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What does misclassifying mean?

Looking for the meaning or definition of the word misclassifying? Here's what it means.

Verb
  1. present participle of misclassify
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The Internal Revenue Service wants to know how many companies are misclassifying employees as independent contractors and failing to pay taxes on fringe benefits.
Requires the DOL to target industries it determines to have frequent incidence of misclassifying workers for audits.
The penalties for misclassifying someone as a contractor can be severe.
I guess I should not have been surprised to find people in the United States misclassifying me.
The penalty for misclassifying a genotoxic compound is low as it would be picked up in the later regulatory test.
Those liabilities center on misclassifying employees as contingent workers.

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