Legal Minute: Contractor Misclassification

Holland & Knight LLP
Contact
Labor and Employment attorneys Linda Auerbach Allderdice and Michael Maroney break down independent contractor misclassification in the transportation industry. They explain that if you are doing business in Massachusetts, California, New Jersey or Illinois you likely will have to deal with the “ABC Test.” This test states that an individual providing services is presumed to be an employee unless the company can prove…

A) the individual is free from its direction and See more +

Labor and Employment attorneys Linda Auerbach Allderdice and Michael Maroney break down independent contractor misclassification in the transportation industry. They explain that if you are doing business in Massachusetts, California, New Jersey or Illinois you likely will have to deal with the “ABC Test.” This test states that an individual providing services is presumed to be an employee unless the company can prove…

A) the individual is free from its direction and control

B) the individual performs services outside of the usual course of business for the company

C) the individual is customarily engaged in an independent occupation, trade or business

They offer a real-life example of this test in action; the California Supreme Court Dynamex Decision. This decision determined that the business does not need to control the exact details of the work in order to be found to have maintained the necessary control that an employer normally has of an employee. The hiring entity must establish that the worker is free of such control in order to establish ‘Part A’ of the ABC Test. They conclude by expressing the importance of companies being proactive and examining their delivery operations, marketing practices and their internal policies and procedures to ensure that they are consistent with independent contractor status. See less -

Embed
Copy

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Holland & Knight LLP | Attorney Advertising

Written by:

Holland & Knight LLP
Contact
more
less

Holland & Knight LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.