![]() ![]() The usual definition of an independent contractor is someone who is in business for him or herself, and not for an employer or supervisor. Independent contractors have, in theory, more “independence” than standard employees. What’s the Difference Between an Independent Contractor and a Regular Employee? We’ll further discuss the Dynamex case and how it applies in Chapter 3 below. Superior Court of Los Angeles helps decipher some of the confusion around what laws and factors apply in the context of wage and hour laws, but it leaves other questions unanswered. The recent California Supreme Court decision in Dynamex v. ![]() It is even possible that a worker can be considered an independent contractor for purposes of IRS tax filing, but they are considered an employee under California’s wage and hours laws. There may be some factors suggesting a California worker is an employee and others suggesting he or she is an independent contractor. In addition, California courts apply a different set of standards when determining whether or not a worker is an employee or an independent contractor for each case, depending on the purpose of the determination.įor example, a different set of standards applies for cases under California’s workers’ compensation laws as opposed to wage and hour laws, and for purposes of determining the following:Īlthough the specific tests applied under federal and state laws differ, the factors in those tests are often confusingly similar to each other.įurthermore, the application of the relevant factors in any of these tests to the circumstances of a particular case can be extremely fact-specific. ![]() Contact a California Employment Attorney for a Consultation What Determines an Independent Contractor From a Regular Employee in California? Our CA employment lawyers will explain what you should know about California misclassification and independent contractor law.įor immediate assistance, please don’t hesitate to give our employment law attorneys a call at (415) 508-7786 or contact us online. However, when the question before a court is whether or not a worker is entitled to the protection of California’s non-discrimination laws, then state law, as well as another set of factors would apply in making the determination. This method of classification is slightly different than the method used in federal cases, which applies what is usually referred to as the “ economic reality” test in determining a worker’s status. The determination of each respective status can be particularly tricky because the definitions, criteria, and factors that courts and federal and state agencies apply to determine employee or independent contractor status can vary from one context to another.įor example, when an employer is determining what sort of IRS tax forms it must prepare, it must consider that the IRS looks to common law definitions of employee and independent contractor in making the determination. Or whether the person providing the services has independently made the decision to go into business for himself or herself (suggesting an independent contractor relationship). Generally speaking, the difference between independent contractors and employees in California is whether or not the entity paying for services has the right to control or direct the manner and means of work (tending to signify an employment relationship.) workforce, are now deemed, independent contractors. The article cites a 2016 study by economists that estimates that twelve and a half million people, or 8.4% of the U.S. The distinction between these arrangements can have dramatic consequences for workers and companies.Īccording to an article from the Los Angeles Times, the hiring of California workers as independent contractors has recently “exploded.” A California independent contractor has different legal rights and obligations than an employee. ![]()
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