
I have had the opportunity to discuss employee classification on several occasions in my profession. Or, should I say I have tried to convince employers that they cannot just 1099 a worker and call them an independent contractor. A contractor agreement will not be enough to say a person is an independent contractor either. To determine whether a person is an employee or an independent contract depends on the control the employer has over the worker. Does the employer tell the worker what time to come to work and when to leave? Does employer have policies and procedures which govern the workers job position? Do they provide them with a job description? Does the worker perform duties for the employer exclusively or do they also work for others? Does the worker have their own insurance? There is not just one test that will classify an employee vs. contractor relationship, but if the operations of the worker are controlled by the employer, the worker is probably an employee. In California, a worker is presumed to be an employee and the proof lies with the employer to prove otherwise. In Gardner v. Baby Trend Inc., 2009, where the employer argued the plaintiff was an independent contractor, but the court ruled he was not, and awarded 8.4 million to the employee (Gartner). Classifying employees should not be taken lightly, and in California, if classification is borderline, chances are the worker is an employee.
Reference
Gartner, L. (2009) Verdict Serves as Costly Reminder on Worker Classification in California
retreived from SHRM website 7/21/09.
Reference
Gartner, L. (2009) Verdict Serves as Costly Reminder on Worker Classification in California
retreived from SHRM website 7/21/09.