June 26, 2018

Ep. 32 Don't Get Bit By The Snake

Ep. 32 Don't Get Bit By The Snake

New law on classifying independent contractors

Today's topic is an important one for those that use independent contractors. When you get sued, it’s usually an internal threat by desperate, dishonest people who have worked for you. For this reason, it’s very important to hire independent contractors "the right way."

In the US people can be classified as employees or independent contractors. The distinction really boils down to the business owner paying taxes to the state if using employees. There is more critical information in this episode, so please listen to it in its entirety.

A recent ruling by the California Supreme Court has placed more restraints on the definition of the Independent Contractor. If you’re a business owner in California, this ruling could directly impact your bottom line.

As a business owner, the Independent Contractor must pass these 3 tests:

  • Test A: the independent contractor must be free from your control
  • Test B: that the worker performs work that is outside the usual course of the hiring entity’s business
  • Test C: that the worker is customarily engaged in an independently established trade, occupation, or business, and of the same nature as the work performed for the hiring entity.

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Contact the Queen of Business Law

Kelly Bagla, Esq.
Go Legal Yourself
GoLegalYourself.com