California Supreme Court Ruling Dynamex v. Supreme Court

Is your Independent Contractor still considered an independent contractor? You might need to re-evaluate.

 

Following the recent California Supreme Court ruling Dynamex v. Superior Court, a three-part test is being implemented to determine eligibility for independent contractors. This updated ruling is effective immediately.

Under the Dynamex ruling, an employer that would like to have a worker as an independent contractor must be able to prove that the following applies:

  1. The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; and
  2. Performs work that is outside the usual course of the hiring entity’s business; and
  3. Is customarily engaged in an independently established trade, occupation, or business.

 

This change is effective immediately. Please note that these criteria are still open to interpretation and it is recommended that you discuss with your legal counsel to determine the best course of action for your business.