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Avoiding Legal Landmines When Using Contractors & Other Contingent Workers Leila S. Narvid Payne & Fears LLP
Goals: ,[object Object],[object Object],[object Object],[object Object]
[object Object]
Healthcare Contingent Workers ,[object Object],[object Object]
What are the advantages and disadvantages of using contingent workers? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages: ,[object Object],[object Object],[object Object],[object Object],[object Object]
Independent Contractors Determine whether a worker is an employee or independent contractor! DLSE starts with the presumption that the worker is an employee.   (CA Labor Code § 3357.)
Temporary Employees ,[object Object],[object Object],[object Object]
Employee Leasing/Professional Employment Organizations ,[object Object],[object Object],[object Object],[object Object],[object Object]
Consequences of Misclassifying Employees and Independent Contractors
Consequences of Misclassifying Employees and Independent Contractors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Legal Standards for Determining Employee/Independent Contractor Relationship
[object Object],[object Object],[object Object],[object Object],[object Object],More than Just One Test…
“ Economic Realities” Test ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ Economic Realities” Test (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example of Application of Economic Realities Test ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Don’t fall into the trap… ,[object Object],[object Object]
IRS “20 Factor” Test Who has control over the work being done?
IRS “20 Factor” test (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
IRS “20 Factor” test (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object]
IRS “20 Factor” test (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Common Law Agency Test ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Common Law Agency Test (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
FLSA - Economic Realities Test Employee status depends on the circumstances of the work relationship, and no one factor is dispositive. What is the “true  economic reality” of the employment relationship? Carter v. Dutchess Community College (2d Cir. 1984) 735 F.2d 8
Hybrid Test ,[object Object]
Examples: Employee or Independent Contractor? ,[object Object],[object Object],[object Object]
Examples (cont’d) ,[object Object],[object Object]
Statutes that Address Joint Employment Situations ,[object Object],[object Object],[object Object],[object Object]
Discrimination ,[object Object]
Case Study ,[object Object]
Case Study, cont.   ,[object Object],[object Object],[object Object]
Case Study, cont. ,[object Object],[object Object]
Wages & Hours ,[object Object],[object Object],[object Object],[object Object]
FMLA ,[object Object],[object Object]
Occupational Safety and Health ,[object Object]
Labor Relations ,[object Object],[object Object]
Employee Benefits ,[object Object]
Employment Taxes ,[object Object]
Employment Taxes Case Study ,[object Object]
Immigration ,[object Object],[object Object]
Examples - Joint Employment Situations ,[object Object],[object Object],[object Object],[object Object],[object Object]
Practical Tips ,[object Object],[object Object],[object Object],[object Object]
Practical Tips (cont’d) ,[object Object],[object Object],[object Object],[object Object]

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Contingent Workers

  • 1. Avoiding Legal Landmines When Using Contractors & Other Contingent Workers Leila S. Narvid Payne & Fears LLP
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  • 7. Independent Contractors Determine whether a worker is an employee or independent contractor! DLSE starts with the presumption that the worker is an employee. (CA Labor Code § 3357.)
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  • 10. Consequences of Misclassifying Employees and Independent Contractors
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  • 12. Legal Standards for Determining Employee/Independent Contractor Relationship
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  • 18. IRS “20 Factor” Test Who has control over the work being done?
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  • 24. FLSA - Economic Realities Test Employee status depends on the circumstances of the work relationship, and no one factor is dispositive. What is the “true economic reality” of the employment relationship? Carter v. Dutchess Community College (2d Cir. 1984) 735 F.2d 8
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