California has always been at the forefront of protecting workers’ rights, at least according to legislators. Businesses often disagree with decisions made in Sacramento, but eventually a new equilibrium is found and business goes on. Now, though, the difference between independent contractors and employees is becoming blurred and this could have major consequences for employers.
At Sacks & Associates, we know that you want to follow the law, but we also know that the laws keep changing. Running a business is not easy, particularly for smaller business owners. Sometimes, mistakes are made inadvertently. If you need a Los Angeles uninsured employers attorney, call us today so we can get to work for you.
Last year, the California Supreme Court took steps towards protecting all workers in the state, including those who have been labeled as independent contractors. If we look at the Dynamex Operations West vs. Superior Court of Los Angeles County case, we see that they specifically wanted to say that companies need to be careful when classifying employees.
The decision makes it more difficult for business to classify workers as independent contractors.
Why does that matter?
When a worker is labeled as an independent contractor and not an employee, the employer is off the hook for many expenses that it would typically be required to pay (workers’ compensation insurance, payroll taxes, paid leave, overtime pay, unemployment benefits, etc.) and they still get the work completed.
What you may be surprised to learn, and why this decision has faced such pushback from businesses, is that highly skilled workers are a part of the so-called gig economy now. It is not just couriers and drivers. Software developers, security experts, and content writers are all being hired as independent contractors.
Please be aware that the California Department of Industrial Relations website gives guidance as to who should be classified as an independent contractor and who should be an employee. The state, especially after the court decision, is going to be on the lookout for employers looking to take shortcuts in order to save a little bit of money.
We know that businesses need flexibility when it comes to hiring, but the state may not see your decisions as being in the best interests of workers. If the state of California has alleged that you have done something wrong in regards to insuring your employees, you need to seek legal assistance as soon as possible. There is too much on the line when it comes to your business to try to handle the issues yourself.
At Sacks & Associates, we have the experience you need to chart the best path forward. Not only will be work to get the charges against you reduced or dismissed, but we will also help you remedy any mistake you made so you are legal moving forward. When you need a Los Angeles uninsured employers attorney, you can contact us for a free consultation by clicking here or calling 310-216-7778.