Lesson 1Interaction with wage-hour laws, overtime rules, and state unemployment insurance requirementsExamines the impact of worker status on minimum wage, overtime, meal and rest breaks, and eligibility for California unemployment insurance, along with how misclassification leads to concurrent wage-hour and benefit obligations.
Employee coverage under wage ordersOvertime and double-time classification issuesMeal and rest break obligations and risksCalifornia unemployment insurance eligibilityCoordinating state and federal wage rulesLesson 2Sample contractual clauses and red flags to avoid (control language, supervision clauses, required training)Offers example clauses that bolster contractor status and pinpoints warning language, such as precise control, supervision, compulsory training, and timetable stipulations, which may jeopardise independent contractor designations in California.
Autonomy and independent business clausesControl and supervision wording to avoidTraining, onboarding and policy referencesExclusivity, noncompete and schedule termsUpdate and review processes for templatesLesson 3How to draft contractor engagement agreements: scope, deliverables, payment terms, IP assignment, indemnitiesAddresses structuring independent contractor agreements in California, encompassing defined work scopes, deliverables, payment arrangements, intellectual property ownership, confidentiality, indemnities, and provisions that uphold contractor independence while curbing control indicators.
Defining scope of work and deliverablesPayment terms, milestones and expensesIP ownership, licenses and work made for hireConfidentiality, data security and privacyIndemnities, limitations of liability and insuranceAutonomy clauses that limit control signalsLesson 4Recordkeeping, audits and documentation practices: contracts, statements of work, communications, invoices, performance metricsDetails designing recordkeeping systems to retain contracts, statements of work, invoices, correspondence, and performance records, plus preparing for audits or disputes by evidencing consistent, thoroughly documented procedures.
Core documents to retain and organizeStructuring statements of work for clarityEmail and messaging practices as evidenceInvoice, payment and tax form recordsPreparing for agency audits and subpoenasLesson 5Key statutory frameworks: IRS 20-factor summary, ABC test variations, Department of Labor economic realities testSurveys primary statutory and regulatory structures, including IRS 20-factor guidelines, federal economic realities test, and California’s ABC test adaptations, underscoring how each assesses control, reliance, and business autonomy.
IRS 20-factor guidance and evolutionFederal economic realities test factorsCalifornia ABC test and exemptionsIndustry-specific statutory carve-outsPrioritizing stricter overlapping standardsLesson 6Operational measures to reduce reclassification risk: genuine business-to-business relationships, multiple clients, autonomous scheduling, separate invoicing and paymentsOutlines operational strategies fostering authentic business-to-business ties, like employing contractor entities, serving multiple clients, self-directed timetables, distinct invoicing, and steering clear of employee-like oversight, equipment, and performance evaluation.
Using contractor entities and business licensesEncouraging multiple clients and open marketsIndependent scheduling and location choicesSeparate invoicing, payments and tax formsLimiting supervision and performance controlsLesson 7Overview of common law and statutory tests for employee vs independent contractor (IRS, DOL, state agencies)Presents common law and statutory assessments applied by the IRS, U.S. Department of Labor, and California bodies, juxtaposing their elements, aims, and enforcement methods in classifying employee versus independent contractor status.
IRS common law control frameworkDOL economic realities test overviewCalifornia ABC test and key elementsAgency guidance, rulings and opinion lettersReconciling conflicting test outcomesLesson 8Consequences of misclassification: back wages, payroll taxes, penalties, unemployment and workers’ comp liabilitiesInvestigates monetary and legal repercussions of misclassification, such as retrospective wages, unpaid overtime, payroll taxes, fines, interest, benefit payments, and vulnerability to unemployment insurance and workers’ compensation assertions.
Back wages, overtime and premium payPayroll tax assessments and penaltiesCivil penalties, interest and fee shiftingBenefits, ERISA and fringe claim exposureUnemployment and workers’ comp liabilitiesLesson 9State-specific criteria: control, integration, financial arrangements, permanency, tools and method of workClarifies California’s evaluation of control, business integration, financial exposure, tool provision, and engagement length in differentiating employees from independent contractors under core state benchmarks.
Behavioral and scheduling control factorsIntegration into core business operationsWorker’s opportunity for profit or lossProvision of tools, equipment and workspacePermanency and exclusivity of the relationship
