The new decision in Beaumont-Jacques v. Farmers Group examines the test in determining a worker’s independent contractor status. In applying the “economic realities” test set forth by the California Supreme Court in S.G. Borello & Sons, Inc. v. Dept. of Industrial Relations, the Court focused on whether the worker had “meaningful discretion with reference
Costly Mistake of Misclassifying Independent Contractors
Many California companies have recently been sued and had an assessment issued against them by the California Employment Development Department (“EDD”) for unpaid payroll taxes because the company allegedly misclassified its California workers as independent contractors rather than employees.
If a company improperly classifies a worker as an independent contractor, it may face liability from…