Work with Contractors? Red Alert!

Is that independent contractor you work with actually an employee? No? Think again! According to the state of California, they might be!

…The new standard adopted by the Supreme Court (dubbed the “ABC test”) requires hirers to establish three factors in order to properly classify a worker as an independent contractor – and in the process greatly expands the definition of “employee” under California law:

A.  The worker is free from the control and direction of the hirer in connection with the performance of the work, both under contract for the performance of such work and in fact; and

B.  The worker performs work that is outside the usual course of the hiring entity’s business; and

C.  The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed by the hiring entity.

Read more if you like at the Proskauer Blog. Note that the new presumption of the law is that the person is an employee, not a contractor.

Not sure if your business is complying with the law? Contact us if you’d like help with that, and come to The Modern Workplace Minefield for some discussion of this very topic.