- The worker must be free from the employer’s control;
- The services must be different than those of the employer’s business; and
- The worker must be engaged in a business of the same nature as the services he or she provides.
What does all this mean for your business? It means that there is no time like the present to have your worker classifications reviewed by an experienced employment lawyer to ensure compliance with California’s ever changing law. Misclassification can result in significant liability exposure such as non-payment of overtime and/or minimum wage, failure to pay mandatory sick time, failure to provide itemized wage statements, and a host of other potential Labor Code violations. Such an analysis is fact specific and will vary on a case by case basis.
Michelle Ferber is the Managing Shareholder at Ferber Law in San Ramon, CA. She is an employment and business lawyer, defending employers in actions involving harassment, discrimination, retaliation, wrongful termination, wage and hour violations and business torts. Michelle can be reached at Ferber Law phone: 925-355-9800 email: mferber@ferberlaw.com
This article is not intended and should not be relied upon as legal or tax advice pertaining to any specific matter. You are encouraged to seek competent legal and tax counsel before proceeding with any transaction involving any of the matters discussed above.