818.253.1599
Helping Independent Contractors Navigate Classification and Wage Issues
Colby Law Firm assists independent contractors in California with matters related to worker classification, unpaid wages, and contract disputes. Our attorneys have experience navigating the complexities of independent contractor law, including issues related to Assembly Bill 5 and potential misclassification.
If an independent contractor is performing duties similar to those of an employee, they may be misclassified and potentially missing out on employee benefits such as overtime pay, health benefits, and other legal protections.
Colby Law Firm works with freelancers and other independent contractors to help them understand their rights and explore potential legal remedies when classification disputes arise.
Understanding Independent Contract Law in California
An independent contractor is generally defined as a worker who provides services to a client or business while maintaining control over how the work is performed. Unlike traditional employees, independent contractors are usually responsible for managing their own work schedules, providing their own tools or equipment, and handling tax obligations independently.
Independent contractors are often hired to complete specific projects or tasks. However, whether a worker qualifies as an independent contractor depends on various factors and is determined by legal standards—not just by the preferences of the worker or the business.
California has specific laws and legal tests, including Assembly Bill 5 (AB 5) and the ABC test, that are used to assess whether a worker is properly classified as an independent contractor or should be considered an employee.
Because classification depends on the facts of each situation, workers with questions about their status may benefit from consulting an employment attorney.
Assembly Bill 5 and Its Implication for Independent Contractors
California’s Assembly Bill 5 (AB 5), which took effect in January 2020, established a new legal standard for determining whether a worker should be classified as an employee or an independent contractor. AB 5 introduced the ABC test, which is now widely used to assess classification status in many industries.
Under the ABC test, a worker is considered an employee unless the hiring entity can demonstrate all of the following:
- The worker is free from the control and direction of the hiring entity in performing the work, both under the contract and in actual practice.
- The work performed is outside the usual course of the hiring entity’s business.
- The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.
The adoption of AB 5 has led to a variety of legal challenges and has highlighted the importance of proper worker classification. Misclassification can result in legal liability, including claims for unpaid wages, benefits, and penalties under California labor laws.
Because the application of AB 5 and the ABC test can vary depending on the facts of each case and industry exemptions, workers and businesses may benefit from consulting an attorney to understand their rights and obligations.
Misclassification and Why It’s Illegal
Misclassification occurs when a worker who should be classified as an employee is instead treated as an independent contractor. This can result in workers missing out on important rights and benefits guaranteed to employees under California law.
For example, employees are typically entitled to:
- Overtime pay
- Minimum wage protections
- Paid rest breaks
- Reimbursement for work-related expenses
If a worker is misclassified as an independent contractor when they should be classified as an employee, they may lose access to wages, benefits, and legal protections they are entitled to under California law. Businesses that misclassify workers may also face legal liability, including penalties and requirements to pay back wages or other compensation.
Because misclassification issues can be complex and depend on the specific facts of each situation, workers who have concerns about their classification may benefit from consulting an employment attorney to better understand their rights and potential options.
Contact Us for a Free Case Evaluation
Colby Law Firm offers a free case evaluation for independent contractors. By submitting basic information about your situation, our team can assess whether your matter falls within our practice focus. There is no charge and no obligation. If we believe we can assist, we will follow up with next steps.
Challenges Faced by Independent Contractors
Independent contractors are often self-starters, freelancers who’ve taken the reins of their professional lives into their own hands. Rather than being directed by an employer, these individuals call the shots, dictating the terms of their work, setting their schedules, and maintaining control over their work environment.
While independent contractors enjoy a certain degree of flexibility, they are not provided the same level of benefits and protections offered to traditional employees. This means no minimum wage safeguards, no overtime pay, and no automatic coverage for unemployment insurance or workers’ compensation.
The distinction between an employee and an independent contractor may seem blurry at times, but getting it right is crucial. For this reason, both businesses and workers alike must understand the defining characteristics of an independent contractor, as it impacts everything from work conditions to legal protections.
Penalties for Misclassification
Misclassifying an employee as an independent contractor can have serious consequences for both workers and employers. For workers, misclassification may result in the loss of wages, benefits, and legal protections typically provided to employees. For employers, it can lead to legal liability.
California law allows for civil penalties when an employer is found to have intentionally misclassified a worker. Penalties typically range from $5,000 to $15,000 per violation. In cases where a pattern or practice of willful misclassification is identified, courts may impose additional penalties of up to $25,000 per violation.
Because the rules governing classification are complex and penalties depend on the specific facts of each case, workers and businesses who have concerns about misclassification may benefit from consulting an employment attorney to understand their rights and potential next steps.
Why Choose Colby Law Firm for Your Independent Contractor Needs
Navigating California’s complex employment laws—including worker classification, unpaid wages, and workplace rights—can be overwhelming. At Colby Law Firm, we assist independent contractors and employees who are seeking clear guidance and experienced support to resolve a wide range of workplace concerns.
Whether you’re facing potential misclassification, wage disputes, or other employment-related challenges, our attorneys can review your situation, explain your rights, and discuss what legal remedies may be available. We understand the real-world impact these issues can have on workers’ livelihoods and are committed to helping clients understand and pursue their options with confidence.
Colby Law Firm’s Approach to Independent Contractor Cases
At Colby Law Firm, our attorneys are dedicated to advocating for clients and providing skilled representation in employment and independent contractor matters. We draw on years of experience navigating California’s complex employment laws, including worker classification, wage disputes, and contract issues.
Our team takes a client-centered approach, reviewing each situation carefully to understand the unique facts and challenges involved. We strive to offer clear guidance and explore potential legal remedies when available.
Request a Free Case Evaluation
If you believe you have been misclassified as an independent contractor or are facing other employment-related concerns, you can request a free case evaluation. By submitting basic information about your situation, our team will assess whether your matter falls within our practice focus. There is no charge and no obligation. If we believe we can assist, we will follow up with next steps.
Testimonials
What California Says About Our Employment Lawyers
Professional Affiliations & Honors
Proudly Affiliated with Leading Legal Organizations
Certifications
Our Certifications Claim Our Extensive Expertise in Employment Law
Why Choose
Colby Law Firm
Aaron Colby is a California employment lawyer who knows how to resolve disputes. After 15 years representing companies, he started Colby Law Firm to represent employees. Aaron’s perspective and experience from being “on the other side” gives him an edge. Aaron brings his practical, focused, and relentless approach to helping employees protect their rights.
Aaron Colby
Lead Attorney and Founder Colby Law