With the rise of the freelancer economy, workers, employers, and lawmakers have all faced questions of who is truly an employee versus and independent contractor. For the past few years, employers have erred on the side of classifying workers as independent contractors. It saves them money since they do not have to offer health insurance, other benefits, or pay taxes on those workers. However, it puts the contractors at a distinct disadvantage since they pay additional taxes and are forced to purchase their own health insurance policies. They also miss out on important employee rights, including workers’ compensation insurance. Not to mention, many freelancers face difficulties saving for retirement without employer-sponsored plans.
This year, a case made its way to the California Supreme Court posing an important question regarding how workers can and should be classified. The court took a worker-friendly approach, which will make it harder for companies to classify workers as independent contractors.
If, under California’s new rule, you believe your employer is misclassifying you as an independent contractor, contact a San Francisco employment attorney at Brod Law Firm.