Abbey Weitzenberg Warren & Emery

Check these guys out! They look like a guy group from the 50’s! Let me know if you want to order one!

In 2019, the law regarding classification of independent contractors changed dramatically under the new ABC Test. The California Supreme Court established a presumption that a worker is an employee unless the employer can show (a) the worker is free from the control and direction of the hirer in connection with the performance of the work under the contract and in fact; (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 that involved in the work performed. #IndependentContractors #CaliforniaLaw

Last year, the California Supreme Court made it more difficult for a business to classify a service provider as an independent contractor. The question of whether an individual worker should be classified as an employee or independent contractor has considerable significance for businesses. If a worker is classified as an employee, then the employer bears the responsibility of paying Social Security and payroll taxes, unemployment insurance taxes, and state employment taxes, ...providing worker’s compensation insurance, and complying with the laws governing the wages, hours, and working conditions of employees. However, if the worker is misclassified as an independent contractor, then the business is now subject to significant liabilities related to wages, penalties, and interest. For a business that wants to comply with California’s independent contractor laws and avoid significant legal exposure, the business must become familiar with the California Supreme Court’s new ABC Test.

Hope everyone had a safe and happy Halloween!