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Rethink Staffing – Are You Compliant?

By | Employment, Human Resources, Independent Contractor, Misclassification

Joyce Rosenberg, Associated Press, reports in the Chicago Daily Law Bulletin: A California law that makes it harder for companies to treat workers as independent contractors takes effect next week, forcing small businesses in and outside the state to rethink their staffing.

The law puts tough restrictions on who can be independent contractors or freelancers rather than employees. Supporters say it addresses inequities created by the growth of the gig economy, including the employment practices of ride-sharing companies that use contractors.

Company owners with independent contractors must now decide whether to hire them as employees or look for help in other states. An alternative: asking these workers to start their own businesses.

Although the law affects companies of all sizes and out-of-state businesses that use California contractors, it likely will have a greater impact on the many small businesses that have hired independent contractors because of limited staffing budgets. Read the whole article here.

2020 New Employment Law in CA Sets Trends

By | Business, Employment

The National Law Review reports: As a notorious trend-setter in the employment law realm, California ranks among the toughest in the nation when it comes to regulations imposed on employers that conduct business within the state. Accordingly, compliance with the plethora of employment laws in California has become more and more challenging every year and it looks like things will be no different in the new year with the passage of Assembly Bill 5 (AB 5).

Read more here.

CA Grinch Steals Christmas

By | Business, Human Resources, Independent Contractor

Michael Watson writes workers beware major labor unions bearing “gifts.” California has given us yet another case study in union “gifts” to workers backfiring, passing a union-favor law which led to Vox Media canceling its contracts with freelance contributors in the state to comply and putting hundreds of writers out of work just in time for Christmas. Read about these Grinch actions here.

Misclassification Legally Just or Unjust?

By | Employment, Human Resources, Independent Contractor, Misclassification

JDSUPRA reports “Independent contractor misclassification” is a phrase that is misunderstood, misapplied, and misused – constantly.  It is used to cover an array of disparate forms of IC misclassification: unpardonable; uninformed; unprepared; unintentional; and unjust. [1]

The phrase is used to cover companies that engage in indefensible and unpardonable conduct, such as when a construction worker, custodian, or restaurant worker is paid in cash under the table or when a company knowingly pays an administrative assistant on a 1099 basis.

But the same term is also applied in a few states to de-legitimize IC relationships that are lawful under the laws in almost all other states and under all federal laws governing ICs.  When used in that latter context, such as where ICs have some of their own customers but also choose to supplement their income by using a referral company that sends them additional customers seeking the types of services they provide, the phrase “IC misclassification” can justly be regarded as legally unjust to both independent contractors and businesses.

Read more about the “Five Degrees of IC Misclassification” here.