3/30/23

Employee or Independent Contractor? Your Guide to California Law on Worker Classification

Misclassifying workers can be an expensive mistake, so in this video, we’ll explore the California law used to determine if a worker is an employee or an independent contractor. Those standards are a mix of old and new law, so we’ll get into some background, and then tie it all together. The current law includes the Borello balancing test, ABC test, and various legislative enactments.

The topic is evolving and can be complex, so if you’re unsure whether you (or a hired worker) are an employee or independent contractor, you’d be wise to consult with an attorney knowledgeable in that area of the law.

📬 CONTACT

I’m attorney Steve Matcha, a California attorney focusing on employment law. If you have any legal questions or know of someone who does, I can be reached at: steve@matchalaw.com or 619.565.3865.

⏳ TIMESTAMPS

00:00 Introduction

00:20 Types of Worker Classification

00:59 Consequences of Misclassification

01:37 Legal Background

01:54 S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341

02:52 Dynamex Operations W. v. Superior Court (2018) 4 Cal.5th 903

03:35 AB5

03:54 AB2257

04:01 Prop 22

04:24 California Business and Professions Code, Division 3, Chapter 10.5. App-Based Drivers and Services

04:41 Castellanos, et al. v. State of California, et al. (March 13, 2023) 2023 Cal. App. LEXIS 183

05:08 Borello Balancing Test

07:00 ABC Test

📑 RESOURCES

California Labor Commissioner's Office / Exemptions from the overtime laws: https://www.dir.ca.gov/dlse/faq_overt...

California Labor Commissioner's Office / Independent contractor versus employee: https://www.dir.ca.gov/dlse/faq_indep...

S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341: https://scocal.stanford.edu/opinion/s...

Dynamex Operations W. v. Superior Court (2018) 4 Cal.5th 903: https://scocal.stanford.edu/opinion/d...

Assembly Bill (“AB”) 5: https://leginfo.legislature.ca.gov/fa...

AB2257: https://leginfo.legislature.ca.gov/fa...

Proposition (“Prop”) 22: https://vig.cdn.sos.ca.gov/2020/gener...

California Business and Professions Code, Division 3, Chapter 10.5. App-Based Drivers and Services: https://leginfo.legislature.ca.gov/fa...

Castellanos, et al. v. State of California, et al. (March 13, 2023) 2023 Cal. App. LEXIS 183 (re constitutionality of Prop 22): https://www.courts.ca.gov/opinions/do...

⚠ DISCLAIMER

What would an attorney video be without a disclaimer? Law can be complex, and it changes. That’s why you shouldn’t make any decisions based on this video. Instead, you should speak with a lawyer familiar with the current law that could apply to your situation.

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