March 24, 2020 7 minutes to read · 1500 words

Employee vs. Independent Contractor: A Distinction with Huge Differences

By David G. Jones

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Few areas of labor and employment law are more misunderstood and wrongly decided by companies than the decision to classify a worker as either independent contractor or employee. This determination is fraught with subjective analysis and uncertainty. California recently enacted one of the most restrictive tests in the nation for making this determination. As California is often a bellwether for social and legal trends across the nation, a discussion of California’s new law can be instructive for those in other states as it can be anticipated that other states will follow California’s lead.

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