Independent Contractors

As previously reported, just over a year ago, the California Supreme Court issued a sweeping decision instituting a new test, called the “ABC test,” to determine whether a worker is properly classified as an independent contractor instead of an employee. On May 3, 2019, the California Department of Labor Standards Enforcement (DLSE), issued an opinion letter providing California employers with further insight on how the Labor Commissioner’s Office plans to apply the ABC test.

Last week, the California Supreme Court issued a sweeping decision adopting a new test that will make it much harder for companies to show that workers qualify as independent contractors instead of employees.  The ruling affects all companies in California that work with independent contractors, which includes freelance workers and outside consultants. The Court’s decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles may end up requiring companies that work with independent contractors to follow wage and hour laws that apply in the typical employer-employee relationship.