The California Supreme Court may be about to rewrite the test for Who Is My Employee? under California wage and hour law. [Note 4/30/18: It just happened. Read more here.]
Independent contractor relationships that have stood the test of time may be in jeopardy. And I don’t mean the (mildly?) entertaining Alex Trebek kind of Jeopardy. We’re talking real economic upheaval and uncertainty — worse than Schwarzenegger taking over Celebrity Apprentice.
Here’s the issue: Continue reading
Let’s talk about good old-fashioned 1099 Independent Contractors — you know, those individuals who are happy to be called contractors until they’re released and then decide they should have been treated as employees.
When retaining a contractor, one of the goals, of course, is to ensure that the contractor is properly classified and is not really (factually) an employee. A secondary goal, however, is to limit liability if the contractor is misclassified.
Today’s question sits at the intersection of these two goals. Continue reading
The Economic Realities Test seeks to determine whether, as a matter of economic reality, the worker is reliant on the hiring party, or is in business for him/herself.
[UPDATED 10/9/2021, 3/15/22: See Notes in red, below.]
The Fair Labor Standards Act (FLSA) uses an Economic Realities Test to determine whether a worker is a contractor or an employee. If the worker is an employee under this test, then the federal minimum wage and overtime rules apply, subject to any exemptions. This test is also used to determine who is an employee under the Family and Medical Leave Act (FMLA). Continue reading
Who Is My Employee? 