Misclassifications
In recent years many employers have reclassified their
workers as "independent contractors" to avoid the costs of workers compensation
and overtime pay associated with employment of workers classified as employees.
There are myriad consequences to employers for misclassification of employees
as independent contractors and managers including penalties from government
agencies, liability for overtime premium, meal period pay, and other remedies
available to employees under the Labor Code and Orders of the Industrial
Welfare Commission, exposure for tort liability for injuries suffered by
employees when workers compensation insurance is not secured, exposure for
unfair business practices, tax liability and penalties and even criminal
liability.
To determine whether a worker is an employee or an
independent contractor, several factors must be considered: acts that show
whether the business has a right to direct and control. An employee is
generally told by his employer (1) when, where, and how to work, (2) what tools
or equipment to use, (3) what workers to hire or to assist with the work, (4)
where to purchase supplies and services, (5) what work must be performed by a
specified individual, and (6) what order or sequence to follow. An employee may
be trained to perform services in a particular manner. Facts that show whether
the business has a right to control the business aspects of the worker's job
include: (1) The extent to which the worker has unreimbursed expenses; (2) The
extent of the worker's investment; (3) The extent to which the worker makes
services available to the relevant market; (4) How the business pays the
worker; and (5) The extent to which the worker can realize a profit or loss;
Facts that show the type of relationship include: (1) Written contracts
describing the relationship the parties intended to create; (2) Whether the
worker is provided with employee-type benefits; (3) The permanency of the
relationship; and (4) How integral the services are to the principal
activity.
Please read below to learn about the following
subjects:
For a free consultation with an experienced employee
rights attorney, contact David Spivak:
- Email David@SpivakLaw.com
- Call toll free (877) 277-2950
- Visit The Spivak Law Firm, 16530 Ventura Boulevard Suite 312 Encino, CA 91436
- Fax (310) 499-4739
For further information on your rights in the work
place, please visit our other websites:
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