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What is an independent contractor now?

February 17, 2019 8:12 AM | Todd Stearns (Administrator)

If you own a hair, fitness or services-based business in Ladera Ranch or Rancho Mission Viejo that utilizes independent contractors  you should know how those people are defined is now being tested by a court ruling last year.  

"The Dynamex Operations West, Inc. v. Superior Court decision by the California Supreme Court in April 2018 overturned three decades of California employment law that allowed individuals to work as independent contractors. This decision could upend how millions of Californians earn a living and nearly every industry due to its new restrictive ABC test. The ABC test is the first time in U.S. history that such a test has been imposed by a court, without legislative approval, with three independently disqualifying factors" (from I'm Independent Coalition).

At the Chamber, we try hard to separate ourselves from any topic relating to politics - unless we are sure the result would negatively impact our local businesses. In this case, it appears the Dynamex decision would do so. 

Here is a document which does a good job explaining things Im-Independent-Fact-Sheet-2.5.19v2.pdf

Bottom line, EDUCATE YOURSELF and schedule a consultation with your accountant. 

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