California’s wage and hour laws impose various requirements upon employers. These requirements cover various aspects of employment, such as minimum wage, overtime pay, and lunch and rest breaks. However, these wage and hour laws apply to employees – they do not apply to independent contractors.
Employers should proceed with caution, however. California imposes extremely harsh penalties for misclassifying employees as independent contractors. California law typically looks to different factors in deciding whether an individual is an independent contractor, as opposed to an employee. These factors include whether the worker is using his/her own tools and materials, where the worker renders services, the term of the working relationship, and other similar factors which can help examine the employment relationship. Merely having a written independent contractor agreement between the parties will not be dispositive of the issue.
If you have any questions regarding an independent contractor’s status or for more information, please contact the VC Law Group via phone at (858) 519-7333 or email at info@thevclawgroup.com.