Project Description

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Q: Employee or Independent Contractor?

The CA Legislature, following the recent Supreme Court ruling in the Dynamex case, has just amended Labor Code § 2750.3. For purposes of the Labor Code, CA Wage Orders and Unemployment Insurance, a worker will be presumed to be an employee, and not an independent contractor, unless the worker’s hirer demonstrates all of the following: (a) The hirer has no control/direction over the work or worker; (b) the work being performed is outside the hirer’s normal business activities; and (c) the worker customarily works at an independent trade or business. This is known as the “ABC” test. It will be difficult to meet for most workers, making them employees.

Douglas B. Large, Partner