Workers in California have rights that aren’t present in other states. Some of these have to do with the classification of that worker. Some workers are considered employees and have significant protections, but others are independent contractors who have fewer protections.
Some employers misclassify workers on purpose in order to save money on benefits. Other employers make an honest error that’s not intentional. In either case, it’s critical that anyone who should be classified as an employee is classified as such so they can have benefits like workers’ compensation, unemployment insurance, paid sick leave and meal and rest periods.
When can someone be considered an independent contractor?
An independent contractor must pass the ABC test, which consists of three points that must be present if they’re not going to be considered an employee.
- Employer doesn’t control or direct the individual as they perform the job duties
- Work done isn’t within the scope of the employer’s usual course of business
- Worker regularly does the type of duties they’re being hired to do by the employer
All three of these conditions must be true if the person is an independent contractor. If even one of those points isn’t true, the individual is an employee and not an independent contractor.
People who feel they’re being misclassified should have someone assist them with determining if this is the case. If it is, there are serious penalties that the employer can face. Having assistance in these matters is beneficial because these cases can be complex if a worker opts to take legal action against an employer.