|I think very few of us are likely to be affected in any way by this bill, first because of this: "The bill would state that addition of the provision to the Labor Code does not constitute a change in, but is declaratory of, existing law with regard to violations of the Labor Code relating to wage orders of the Industrial Welfare Commission."|
Secondly, the bill summary states that it's the 'hiring entity' who has the responsibility to prove that the person they hire isn't an employee - and they clearly have lots of incentive to do so. The question for us, then, is what have we done, or what are we doing, to make that job easier for them? Do our actions and does our business presence make us look like an employee or an independent contractor?
While it appears true that the default status is for the hired person to be an employee, here are the three requirements for exemption from employee status:
"...a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity’s business, and the person is customarily engaged in an independently established trade, occupation, or business."
Comments re: requirements:
1. If anything, it might make some companies more cautious about trying to provide "control and direction" in how we complete our work - if we're lucky.
2. What we do here in CA is notarize signatures and get loan documents executed. The primary function of most signing services, though, is to FIND notaries to do what we do on behalf of their clients. The signing services and NSAs who do signings as well as contract some jobs out to others may have to think about how this one affects them. And those signing services (or NSAs) who primarily service one or two title/escrow offices might have to rethink their business plan.
3. This one is on us. Are we making a demonstrable effort to solicit business from a variety of companies? Do our online profiles make us look like a business or like a person who does some work for one or a few hiring entities?
I haven't bothered to look up the two legal cases this bill refers to, which might provide more clarity one way or the other, but rengelCA, you're probably the most qualified person here to do that, if you choose. If so, we'd all probably be interested in your thoughts. I know I would.