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Independent Contractors: California

Independent Contractors requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Anthony J. Oncidi, Proskauer Rose LLP

Summary

  • California applies a three-part "ABC Test" to determine whether a worker is an employee or an independent contractor under many state laws. See The ABC Test.
  • Businesses that hire independent contractors must file certain reports and avoid workplace harassment. See Hiring and Managing Independent Contractors.
  • Employers that misclassify employees as independent contractors in California may be liable for income tax withholdings, unpaid wages and wage-related penalties, state disability and unemployment insurance contributions, workers' compensation insurance premiums, liability to employees and third parties for workplace injuries, as well as other civil penalties and fines. See Consequences of Misclassification.
  • Los Angeles has requirements pertaining to independent contractors. See Local Requirements.