Latest Guidance on Independent Contractors

Federal and State agencies have given fast and furious guidance regarding proper classification of independent contractors. In June 2017, the Department of Labor (“DOL”) withdrew its prior guidance on independent contractors, putting employers on shaky ground when making classification decisions. Agencies have since issued additional guidance for employers.

In April, the DOL validated the independent contractor relationship in VMCs by articulating that VMCs connect service providers with consumers, as opposed to employing the service providers. In August, the NLRB issued an order effectively removing itself from the misclassification controversy, ruling that employers who misclassify workers as independent contractors do not violate the NLRA.

California has stood out among the states in this area. The California Supreme Court’s 2018 Dynamex decision changed the applicable classification test, shifting from the prior “Borello Standard” (i.e. control) to the new “ABC Test,” which makes proper use of the independent contractor classification nearly impossible. This panel examine the impact of this change as well as the proposed (and dueling) legislative attempts to enter this arena.

Listen as our distinguished panel discusses these and other issues which will enable a forward look into 2020. The panel will explore what this new guidance means for employers across various industries, as well as best practices for employment counsel when advising clients on classification.

1. Overview of the DOL’s April 29, 2019 Opinion Letter guidance regarding independent contractor classification.
2. Overview of the NLRB’s August 29, 2019 Order ruling that employers do not violate federal law under the National Labor Relations Act (“NLRA”).
3. Overview of the ever changing landscape regarding independent contractor classification in the State of California.
4. Discussion of unanswered questions in light of this new guidance
5. Best practices for employment counsel handling classification issues

The panel will review these and other relevant topics:

• What new guidance have Federal and State agencies provided concerning classifying independent contractors?
• How does this guidance affect employers when making classification decisions?
• What questions remain unanswered, and what are the best practices for employment counsel going forward?