Category: Independent Contractors

assorted microphones

What Do Employers Need to Know Following the Passage of California’s New Law on Independent Contractor Misclassification?

On September 18, 2019, Governor Gavin Newsom signed into law Assembly Bill 5, which clarifies when workers should be considered “employees” under the California Labor Code and the California Unemployment Insurance Code, thereby entitling them to the protections afforded by those laws. The bill codifies the standard set out in last year’s California Supreme Court decision, Dynamex Operations West, Inc....

Quirky Question #220, Independent Contractors

Quirky Question #220, Independent Contractors

Question: I have always understood that California employers that misclassify workers as independent contractors face potential liability, including compensatory damages, penalties and attorney’s fees. I recently heard a news broadcast that mentioned there were cases suggesting that recent court decisions have approved the use of independent contractors in California.  Is that true and what are the takeaways?

Why You Should Re-Evaluate Your Independent Contractor Designations

Why You Should Re-Evaluate Your Independent Contractor Designations

Why You Should Re-Evaluate Your Independent Contractor Designations In an uncertain economy, companies are often reluctant to commit to permanent hires and instead choose to rely upon independent contractors to meet their staffing needs. But what might seem like an optimal staffing strategy can pose significant risks to companies. The U.S. government is cracking down on companies that treat workers...

Quirky Question # 169: Independent Contractor or Employee?

Quirky Question # 169: Independent Contractor or Employee?

Question: Our company is located in Washington. To limit costs, we turned to use independent contractors in order to avoid paying benefits, limit overhead, and increase flexibility. But when can someone we hired as an “independent contractor” and for whom we expressly retained no “right to control” nonetheless be deemed an employee, exposing the company to unplanned risks under Federal...

Forcing Employees to Litigate in One State, Quirky Question # 153

Forcing Employees to Litigate in One State, Quirky Question # 153

Quirky Question #153 Our company has independent-contractor consultants in many states. Our headquarters is in Minnesota. We know that we could be sued in any of the states where we have independent contractors, and that many of those states apply their own legal tests to determine whether an individual is an independent contractor or employee. To get a little predictability,...

“Long Term” Independent Contractors, Quirky Question # 86

“Long Term” Independent Contractors, Quirky Question # 86

Quirky Question # 86: We run an insurance company.  Some members of our workforce are employees; some are independent contractors.  Admittedly, some of our independent contractors have held this status for some time. We don’t pay our independent contractors overtime for their efforts – we really don’t even know how many hours they put in.  I’ve heard some rumors that...