Here, our Los Angeles employment lawyers detail the top five most common causes of California employment lawsuits.
- Independent contractor misclassification. There are two basic classifications of workers: Employees and independent contractors. Employees are entitled to a host of key workplace protections, minimum pay requirements, meal/rest break requirements, workers’ compensation insurance, unemployment insurance, anti-discrimination rules, etc. Independent contractors, however, do not have the same protections – because they’re effectively considered their own employees. On the whole, employees are a lot more expensive than independent contractors. Employers have been known to improperly classify employees as independent contractors to avoid the extra expenses. But this is illegal, and employees who have been wrongfully classified, they are entitled to compensation for the wages/benefits they missed out on. The litmus test for determining whether a worker is an employee or independent contractor is the “ABC Test,” adopted by the California Supreme Court in the Dynamex Operations v. Superior Court ruling in 2018. Essentially, it asks whether a worker is free of employee control, performs tasks outside the usual course of the company’s business, and is regularly engaged in an independently-established trade, occupation, or business. If the answer is “yes” to all three, then the individual is likely an independent contractor. Otherwise, they are an employee – entitled to all the same rights and responsibilities. The legal presumption is that the worker is an employee, unless it can be proven otherwise.