Federal laws protect employees from wage exploitation. Under the Fair Labor Standards Act, workers legally deserve a minimum wage and overtime pay. However, some employees qualify for exemptions from overtime pay. Employers know this and may commit fraud in the form...
Employee Classification
What differs independent contractors from traditional employees?
You started a new job recently, but you do not know how your company classifies your position. Are you a regular employee or an independent contractor? Business News Daily explains the difference between employee classifications. Learn how to determine whether your...
If you are over 40, carefully review your severance agreement
A severance agreement is a contract between you and your employer that compensates you for certain limitations on your post-employment life. If you are a departing employee aged 40 or older, the severance agreement must contain specific content in order to be...
How could I tell if a new employer misclassified my position?
When you start a new job, your employer must retrieve a certain amount of personal information about you. As described by the IRS, new hires need to complete a W-4 form so employers know how much tax to withhold from their paychecks. To add you to a company's payroll,...
Does the ABC test determine the status of all California workers?
California largely uses the ABC test to classify workers as employees or independent contractors under the state’s labor code, unemployment code and the Industrial Welfare Commission. However, certain situations exist in which the test does not apply. As a worker in...
How the IRS views employees vs. independent contractors
Flexibility is one of the primary perks of being an independent contractor in California. You likely work on a project basis and determine your own hours. However, if the company imposes job-related control that removes the flexibility, reclassification may be...
What should I know about Proposition 22?
The fight for and against the “gig economy” goes on, as California voters passed Proposition 22 in California in November. One of the biggest employment topics in California over the past year relates to Assembly Bill 5. This bill went into effect on January 1st,...
PRO act looks to change employee classifications
The National Labor Relations Act from 1935 expanded labor relations legislation and laid the ground floor for private sector unionization. The House of Representatives recently approved H.R. 842, the Protecting the Right to Organize Act, which may be the most...
Why is employee classification an important topic?
Employee classification may not seem like a big deal to you as long as you receive a paycheck. However, how your employer chooses to classify you is very important and impacts the compensation and longevity of your job in California. If your employer neglects to...
Will companies successfully overturn AB5?
California frequently leads the nation in many areas of life and business. From advancing technologies to promoting social justice and more, the state may at times be seen as the hotbed of what the future holds. At the beginning of this year, a new law, Assembly Bill...
