Dynamex Ruling and How It Applies to Healthcare

aboutbanner

Are you aware of the Dynamex ruling and how it applies to healthcare and medical corporations in San Diego and across California?  A new opinion recently released by the California Supreme Court will have a profound impact on California healthcare entities which cannot be overstated.  The new opinion released in the case of Dynamex Operations West, Inc. v. Superior Court (often referred to simply as “Dynamex”) will force significant changes for many San Diego area physician practices, medical corporations and other healthcare business entities.

The ruling creates a new legal presumption that all workers in California are classified as employees.  The Dynamex ruling places the legal burden on the shoulders of your healthcare entity or medical practice to prove your independent contractors and 1099 workers meet every prong of a new “ABC” test:

A.  The worker is free from control and direction over performance of work, and

B.  The work provided is not part of the core business services or offerings of the entity, and

C.  The worker is engaged in an independently established business

Therefore, any physician, dentist, nurse, medical technician or other 1099 worker who is providing any work or service related to the delivery of healthcare immediately violates item “B” above as their work is absolutely central to the business at hand.  There are additional concerns regarding scheduling and other activities provided by external healthcare organizations which might violate item “A”.

California Medical Professional Corporations and healthcare entities who use 1099 workers as part of their business strategy must immediately reconsider the nature of those who work in the entity.  The financial risks and penalties associated with Dynamex cannot be exaggerated, and the look-back period for these penalties and fines is four years.

This is why it is important to gain an understanding of the new Dynamex ruling and how it applies to healthcare and Medical Professional Corporations in San Diego.  Contact the experienced and proven medical and healthcare business attorneys at the Watkins Firm or call 858-535-1511 for a free consultation today.  You cannot ignore this landmark and game-changing ruling nor avoid the financial consequences of non-compliance.