Page 5 - Misclassification of Independent Contractors Booklet

independent contractor status in California. This broad application of the Martinez test is currently on appeal to the California Supreme Court and, thus, the future application of Martinez to independent contractor misclassiication cases is uncertain.
In addition to focusing on whether a company has
the right to control workers, the DOL emphasizes
the question of whether workers are in business for themselves. According to the DOL, a worker who is “economically dependent on an employer is suffered or permitted to work by the employer,” and thus should be classiied as an employee.
There are also many other tests depending on the agency/type of claim at issue, including: the IRS 11-Factor test; the EDD/DLSE test; Statutory Employee test – requiring payment of unemployment insurance and worker’s compensation for individuals engaged under a work-for-hire agreement; the EEOC’s test under Title VII; and new guidance from the NLRA.
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