Have you heard about the recent “Dynamex decision” earlier this year in the California Supreme Court? What is the impact of Dynamex upon independent contractor misclassification and employee status here in San Diego and throughout California?
The case of Dynamex Operations West, Inc. v. Superior Court (often referred to simply as “Dynamex”) literally changed the nature of employment classification and independent contractors in California. The primary impact of Dynamex is the establishment of a new legal precedent in California that all workers are considered to be and must be classified as employees unless your company can prove they meet all of the conditions established by a new “A-B-C” test:
A. “that the worker is free from control and direction over performance of the work both under the contract and in fact.” and
B. “that the work provided is outside the usual course of the business for which the work is performed,” and
C. “that the worker is customarily engaged in an independently established trade, occupation or business.”
This makes it virtually impossible to classify any worker as an independent contractor if their work has anything to do with your company and its business. If an independent contractor has anything to do with the design, manufacture or assembly of your products, provision of services, delivery, or any work associated with your company’s “usual course of business” they must now be classified as an employee.
We know the impact of Dynamex upon independent contractor misclassification is very bad news for many San Diego and Southern California businesses. We know you don’t want to believe it or abide by it. You should be aware of the significant and potentially business threatening consequences associated with ignoring the impact of Dynamex upon independent contractor misclassification.
We invite you to contact the Watkins Firm or call 858-535-1511 for a free consultation to learn more about Dynamex and new California laws governing independent contractors. Ask about the genuine risks you face and how the EDD, FTB, Labor Commissioner, EEOC, and even the IRS are working together to come after San Diego and California employers with 1099 workers and how the Watkins Firm can help you to come into Dynamex compliance.