Independent Contractor Vs Employee California Supreme Court

The California Supreme Court recently made a landmark ruling on the issue of independent contractors versus employees. This ruling, known as the “ABC test,” has major implications for workers and businesses in California.

First, let’s define the difference between an independent contractor and an employee. An independent contractor is someone who works for themselves and provides services to a business. They have control over how they complete their work and are not under the direct control of the business. An employee, on the other hand, is directly employed by the business and is subject to its control over how they complete their work.

The Supreme Court’s ruling, which came in April 2018, makes it much harder for businesses to classify workers as independent contractors rather than employees. The ABC test sets a higher standard for determining if someone is an independent contractor, making it more likely that they will be classified as an employee.

Under the ABC test, a worker is presumed to be an employee unless the following three conditions are met:

A) The worker is free from control and direction of the hiring company;

B) The worker performs work outside the usual course of the hiring entity’s business;

C) The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

This ruling will have a significant impact on companies that rely heavily on independent contractors, such as Uber and Lyft. These companies may now need to classify their drivers as employees and provide benefits and protections such as minimum wage, overtime pay, and workers’ compensation.

But it’s not just “gig economy” companies that will be affected. Any business that uses independent contractors will need to examine their relationships with these workers to ensure that they are properly classified. This includes businesses in industries such as construction, trucking, and home healthcare.

Overall, the California Supreme Court’s ruling on independent contractors versus employees will bring much-needed clarity to the issue and ensure that workers are properly classified and protected. As a professional, it’s important to stay up-to-date on these types of legal developments and craft content that informs readers on the implications of such decisions.

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