Independent Contractor Vs. Employee Status (Misclassification Issues)

There are only two types of workers in the eyes of the law: independent contractors or employees. They are mutually exclusive. The worker is either an independent contractor or they are your employee, but cannot be both at the same time. This is a threshold and fundamental decision which carries significant legal consequences.

If you have an “employee” then all employment and labor laws under the sun – California and federal – apply. If you have a true independent contractor, they don’t apply (with some notable exceptions). So it’s a big deal to get this right.

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