Employers: Correctly Classify Employees and Independent Contractors

Mislabeling a worker as an independent contractor can expose employers to significant legal liability.

Class action lawsuits in this area continue to rise, and independent contractor arrangements are coming under increasing scrutiny from federal and state enforcement agencies.

Federal enforcement agencies, such as the Department of Labor (DOL) and the Internal Revenue Service (IRS), and California enforcement agencies, such as the Department of Industrial Relations (DIR) and the Employment Development Department (EDD), have made it a top priority to crack down on the misclassification of workers as independent contractors.

California Chamber of Commerce employment law counsel have prepared a white paper, Five Independent Contractor Myths That Can Hurt You, to educate employers on common independent contractor misconceptions.

Learn about the independent contractor myths surrounding:

  • Written agreements;
  • Agency tests;
  • Timesheets; and
  • Other mistakes employers make.

Five Independent Contractor Myths That Can Hurt You is available for nonmembers to download. CalChamber members can download the white paper on HRCalifornia.

The California Chamber of Commerce is the largest, broad-based business advocate to government in California, working at the state and federal levels to influence government actions affecting all California business. As a not-for-profit, we leverage our front-line knowledge of laws and regulations to provide affordable and easy-to-use compliance products and services.