California has long provided fertile ground for employment lawsuits, because the state has strict workplace rules that businesses must follow. And in recent months, several rulings by the California Supreme Court have made it even more likely that employers will get sued. Here’s what employers should know to help reduce the risk of litigation.
1. Independent Contractor Misclassification
How does an employer determine if a worker should be classified as an employee or independent contractor under California wage orders? In Dynamex Operations v. Superior Court, the state Supreme Court adopted an “ABC” test, allowing a worker to be deemed an independent contractor only if the business shows all of the following: