Published: January, 2022
Worker classification can be ambiguous and confusing. Classify your workers as independent contractors when they’re employees, and you’ll get hit with penalties. That’s why it’s important to stay up-to-date with the latest independent contractor guidelines like the withdrawal of the 2021 new DOL rule.
Correctly classifying your workers as employees or independent contractors impacts everything from taxes to benefits. Whereas employees are on your payroll, independent contractors are not. Contractors are responsible for paying their taxes and providing their benefits, like insurance. And, the Fair Labor Standards Act (FLSA) covers eligible employees—not contractors—under minimum wage and overtime laws.
California’s contractor laws state that an independent contractor is a person or business that provides a specific service to another company in exchange for compensation. California Assembly Bill 5, or AB 5, is a legislative act passed by Governor Newsom in September 2019. The new law was effective on January 1, 2020. AB 5 requires companies to reclassify independent contractors as employees with a few exceptions to the rule.
In 2018, the California Supreme issued a critical decision regarding the matter of Dynamex Operators West v. Superior Court of Los Angeles. The Supreme Court rejected a test determining whether to classify a worker as an independent contractor vs. employee known as the Borello test. Instead of the Borello test, an employee-friendly standard was adopted while ultimately upending the independent contractor market.
The most significant turn was how the Supreme Court incorporated a new standard that presumes all California workers are employees unless their employment meets specific criteria. The specific criteria are included in the newly accepted ABC test as a result of the Dynamex decision. Legislation and court rulings have reshaped California's worker classification landscape in an attempt to make compliance easier for employers.
this practical CPE webinar speaker, Cynthia Flynn will
discuss employee classification and the use of independent contractors in the
age of AB5 and the Department of Labor’s most recent rulings in California
MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478
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Founder, Hackler Flynn & Associates
Cynthia Hackler Flynn is the founder and managing partner of Hackler Flynn & Associates, a Southern California based employment defense law firm. Since starting her practice, she has grown the firm to a team of 9, with each attorney having over a decade of experience. The law firm’s focus is employment law where their mission is to protect and defend entrepreneurs and business owners. Cynthia has been voted as a Super Lawyer every year since 2017 and for the last 3 years, has been named as a Pasadena Top Attorney.
We play a significant role in protecting and defending the backbone of our society - business owners.
Cynthia Hackler Flynn, Esq. is the founder and managing partner of Hackler Flynn & Associates, a boutique law firm in Greater Los Angeles that focuses on employment law, business litigation and corporate work. Our core focus is to help commercial businesses defend and protect against employment lawsuits.
What makes us unique:
As a woman-owned law firm, we are a certified Woman Business Enterprise (WBE) and Women-Owned Small Business (WOSB). We work around our clients’ busy schedules and make it as convenient as possible for you to meet with us, either through virtual meetings, conference calls or in-person meetings. Our attorneys offer clear guidance that fully prepares you for all possible outcomes, while also addressing your expectations. In addition to addressing the issues at hand, we also provide a global or long-term perspective that helps you prepare for any changes your businesses might encounter.
In addition to providing expertise in these areas of law, we pride ourselves at being a resource for many of clients’ professional service needs (i.e. CPAs, wealth advisors, bankers, attorneys in other fields, insurance, etc.) through our professional memberships.
Our goal at Hackler Flynn & Associates is to help you thrive in business with the confidence of knowing that we are looking out for you. Our seven attorneys are always ready to take your calls, as we believe personal attention to our clients’ needs is one of the things that truly set us up apart from other law firms serving Southern California.
Apr 11th, 2022
Webinar contained solid information to help prep for additional questions or review of the laws.
Jan 27th, 2022
Audio recording was not very clear.