Q: An employee comes into you, has been characterized as an independent contractor for years. How can you help that person? A: There are a lot of factors to be considered such as: How are you paid? Is there a written contract? What does the contract say? And as for the contract, it may be […]
Types of Employee Classification
The basic classification is “non-exempt.” California law presumes that all employees are non-exempt employees, meaning that they are not exempt from the Labor Code and Wage Order requirements, such as overtime pay, meal and rest breaks, and minimum wage. Usually, non-exempt employees are paid by the hour. The other classification is “exempt.” Exempt employees are […]
The importance of proper employee classification
Why is it important that I be properly classified by my employer? When working for a company, you may be classified and “exempt” or “non-exempt” or the company may treat you as an “independent contractor.” There are several reasons why proper classification is important, both on the employer’s side and on the employee’s side. On […]
What is an “independent contractor”?
An independent contractor is another kind of classification and not necessarily an employee classification. Many employers try to classify people incorrectly as independent contractors because they don’t have to pay the employer’s share of various employment taxes, keep track of hours, breaks nor do they have to provide other common employee benefits such as health […]
Employment Development Department
A problematic issue for California companies in the case of employee misclassifications is that the Employment Development Department (EDD) has been auditing employers who incorrectly categorize their workers as independent contractors. The result of an EDD’s determination that the employer had indeed improperly classified workers as independent contractors is that the employer has to pay […]
