Independent Contractor Versus Employee

It’s been nearly six months since the California Supreme Court announced that employers and government agencies were using the wrong test to determine who’s an independent contractor. In Dynamex Operations West, Inc. v. Superior Court, the court declared that employers must meet the three-prong ABC test to overcome the presumption of employment status. But

Guest blog post by Mikella Wickham:

They say location is everything in business.  How about classification of workers?

In certain industries, workers have a unique combination of specified skills and

Fit people working out
Copyright: wavebreakmediamicro / 123RF Stock Photo.

relative freedom to do their job.  As a result, small businesses are stuck between

Labor laws are not keeping pace with the new economy.  Right now there are only two options for employers.

Option one is to hire employees, and comply with the myriad complicated wage-and-hour laws, including very strict rules about monitoring an employee’s work hours.  In California, an employer must ensure a non-exempt employee works no more

Companies have a lot to lose if they misclassify employees as independent contractors. The affected workers can sue (individually or as a class) for any number of wage and hour violations. Employers can also get in trouble with the Internal Revenue Service, the Employment Development Department, the US Department of Labor, the Division

From the employer’s perspective, the only way to truly “win” an employment case is to avoid it in the first place. We litigators love the thrill of gettting a judge, arbitrator, or jury to decide in our client’s favor. But it can be awfully expensive to get to that point. So without further ado,

Many employers in California feel like the deck is stacked against them. But as I’ve written before, some have a stronger basis for that conclusion than others. Consider the plight of poor Happy Nails, a chain of nail salons. In 2001, they hired a consultant to help them structure their business so that the

We’ve written quite a bit about the new penalties for mischaracterizing employees as independent contractors. But we haven’t talked as much about how to draw the distinction. Partly that’s because different government agencies use different approaches. And some of it’s due to the fact that these can be very fact-specific determinations and it’s hard