If you’re a FREELANCER in CA (aka INDEPENDENT CONTRACTORS) — read all of this to protect your $$$ !
The Insurance Mom wants to make you aware of a recent CA Supreme Court ruling. It could really HURT you as a FREELANCER. If you HIRE freelancers, this new state law could hurt you as a business owner. WATCH OUT!
For more information or to sign-up and have YOUR voice heard please visit I’m Independent to protect your rights as freelancers and/or a business owner.
Dynamex Operations West Inc. v. Superior Court (Dynamex) could require many 1099 independent contractors to become W-2 employees — and YOU won’t have a choice.
The ABC test determines WHO is an independent contractor or an employee. You will be Independent Contractors ONLY if the hiring entity is able to PROVE ALL THREE of the following:
(A) That 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;
(B) That the worker performs work that is outside the usual course of the hiring entity’s business; and,
(C) That the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.
You should be VERY alarmed!! The Dynamex ruling is now CA State law and will NOT be appealed.
The new standard could potentially reach back four years which could financially destroy your business even if you were fully compliant in operating under the previous standard of Independent Contractors.
Hmmm… I have questions: Who is going to be the watchdog? The regulators? The enforcers? Are small businesses at risk as much as large businesses? How will the regulators know who’s doing what and when?
It feels like micro-managing to me… what about YOU?
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