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Employee Status

Contractor Laws and Employee Status in California

Whether you are an independent contractor or an employee makes a huge difference in terms of benefits that you may be entitled to. In general, independent contractors are not entitled to most of the benefits that must be offered to employees. These benefits include, but are not limited to, overtime pay, protection against discrimination, and unemployment insurance. Sometimes employers may classify their employees as “independent contractors” to avoid giving them their entitled benefits.

The courts use different tests to decide whether an individual is indeed an employee or an independent contractor. The law codifies and expands on an April 2018 California Supreme Court decision that set a strict new test for employers. Independent contractors must be free to perform their work as they wish, must be in a different line of work from the company contracting with them, and must operate their own business. Additionally, courts focus on other factors to determine whether the individual is an employee or independent contractor, such as:

  • Behavioral: Does the company have a certain level of control over how the individual does their job?
  • Financial: Does the company control certain business aspects of the individual, such as whether expenses are reimbursed or who provides the supplies? Additionally, the court will look into how the individual was being paid.
  • Type of Relationship: Are there written contracts or employee type benefits?

Victory Law Group, LLP Will Review Your Employment Violation Claim

If you feel you have a valid employment violation claim but are not sure whether you would fall into the independent contractor category, call us at Victory Law Group, LLP. We will review your matter free of charge and help you through this complex process.