CDF's OC Office Managing Partner, Todd Wulffson, was recently quoted in the Auto Rental News' article "Hiring Drivers as Contractors in California? Be Careful."
Excerpt from article:
Here’s the kicker: With the new rule, the burden is now on employers. “This new standard completely flips it — any independent contractor is presumed to be an employee unless the business can prove all three of the ABC factors,” says Todd Wulffson, managing partner for the Orange County office of Carothers Disante & Freudenberger LLP.
“The B standard is the tough one,” says Wulffson. That standard focuses on whether the worker is “providing services to the business in a role comparable to that of an employee,” as opposed to that of a traditional independent contractor.
Wulffson explains that a plumber performing work for a trucking company would still be classified as an independent contractor. But a trucking firm, sales and service fleet, or car rental company using part-time drivers would need to reclassify those workers as employees, because the task of driving is intrinsic to their businesses.
California employers such as trucking companies engaged in interstate commerce catch a break — they fall under federal Department of Transportation regulations that supersede state laws. But that would create an unfair playing field in favor of those operating in California and other states, Wulffson says.
Nonetheless, the new legal standard effectively reclassifies hundreds of thousands of independent contractors as employees. For those fleet operators affected, what can be done?
To read more of the article about what you can do as an employers, click HERE.
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Todd Wulffson
Todd R. Wulffson has focused his practice on counseling and defending businesses in labor and employment matters for over 30 years. In addition to private practice, from 2006-2010, Wulffson served as General Counsel and SVP of…
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