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Worker Classification

Reviewing California’s new rules about Independent Contractors and how Apex can help you navigate worker classification

May 2018

Worker Classification

As the percentage of American workers freelancing continues to increase, organizations across the country closely watched California’s Supreme Court as they heard arguments regarding worker classification. On April 30, 2018 they ruled to set stricter standards for classification of workers as independent contractors.

The ruling requires employers to prove three facts before they can classify someone as an independent contractor:

  • “(A) That the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;
  • (B) That the worker performs work that is outside the usual course of the hiring entity’s business; and
  • (C) That the worker is customarily engaged in an independently established trade, occupation or business of the same nature as the work performed for the hiring entity.”

With the precedence set by California, this ruling could greatly impact companies across the country and in every industry. Classification of employees can be confusing and inaccuracies can lead to legal exposure, fines, and liability for unpaid wages, back pay and payroll taxes, and unpaid premiums for health and workers’ compensation.

Apex can help your company navigate worker classification. Our legal team analyzes applicable federal and state laws and works hard to protect clients from any potential legal exposure related to independent contractor classification issues.

Further, our legal team is always willing to engage in an open dialogue with clients regarding this often confusing legal issue.

Contact the Apex Systems Legal Department with questions at gvaliero@apexsystems.com.


Additional Resources:

The Contingent Workforce—Read how working with a staffing agency can help protect your company.
Why Apex Systems—Read the many reasons Apex is the best staffing and services partner.