Misclassification of Employees as Independent Contractors
Overview
In California, the misclassification of employees as independent contractors can have significant legal implications under employment laws. This practice often denies workers their rightful benefits such as minimum wage, overtime, unemployment insurance, and workers’ compensation.
AB 5 and the ABC Test
California’s Assembly Bill 5 (AB 5) established the ABC test to determine proper classification. Under this test, a worker is considered an employee unless they:
- Are free from control and direction of the hiring entity.
- Perform work outside the usual course of the hiring entity’s business.
- Are engaged in an independently established trade or business.
Consequences of Misclassification
Employers who misclassify workers may face penalties, back wages, and the requirement to provide proper benefits and protections.
Legal Support
If you believe you’ve been misclassified in California, contact Suit Up Legal for a consultation to understand your rights and pursue appropriate legal action.
Sources:
- California Department of Industrial Relations
- AB 5 Legislation