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California Supreme Court Ruling Establishes New Test For Determining Employment Status of Independent Contractors

Posted by Marsh & McLennan Agency West Region on May 10, 2018 at 8:00 AM

Decision may lead to higher costs and greater liabilities for employers

law 2California employers who engage independent contractors are now subject to a stringent new test that may ultimately force employers to reclassify many of these workers as employees, according to a ruling by the California Supreme Court on April 30, 2018.

In affirming a lower court ruling, the justices abandoned a 30-year-old test and created a new standard to determine whether workers who are classified as independent contractors should have the same rights and benefits as full-time employees.

For employers with independent contractors, read on to learn about the broad implications of this ruling and potential financial impact it could have on your organization.

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Topics: Breaking News, Workers' Compensation, Employee Benefits, Human Resources, Property + Casualty

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