Have you seen our white paper: “What You Need to Know about the Recent Dynamex Decision and the Classification of 1099 Workers and Independent Contractors“? This new guide provides insight into Dynamex for San Diego employers and helps to quantify the genuine risks associated with 1099 workers and the misclassification of independent contractors.
The recent Dynamex decision has made a significant impact on California wage orders as well as the relationship between workers and those who provide the work. This landmark and game-changing decision has established a crucially important new legal precedent:
All workers in California are presumed to be employees.
If you, as an employer or provider of work, wish to classify a worker as an independent contractor or 1099 relationship the legal burden of proof lies on your shoulders. The Dynamex ruling establishes a new “A-B-C” test which makes it very difficult to justify many existing independent contractor relationships. In order to qualify as an independent contractor, the provider of work must now prove:
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.”
The misclassification of employees as independent contractors as a result of the Dynamex ruling cannot be overstated. In many cases the fines and costs associated with the misclassification of even a few independent contractors can threaten the financial viability and survival of your company.h
We invite you to download our complimentary Dynamex White Paper and learn more about this landmark ruling and how it will impact business in San Diego and across California in the months and years to come. This new guide provides insight into Dynamex for San Diego employers and explains the risks associated with misclassification. Contact the Watkins Firm or call 858-535-1511 to speak directly with an experienced attorney who can provide insight and guidance on coming into compliance with the Dynamex ruling and how to reduce contingent liabilities associated with existing independent contractor relationships.