Lesson 1Interaction with wage-hour laws, overtime rules, and state unemployment insurance requirementsLooks at how worker status affects minimum pay, extra time work, meal and rest breaks, and right to California unemployment insurance, and how wrong classification causes problems with pay and benefits at the same time.
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)Gives examples of clauses that help prove contractor status and points out warning words, like too much control, watching over work, must-do training, and fixed times, that can spoil independent contractor status 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, indemnitiesCovers how to make independent contractor agreements in California, with clear work areas, things to deliver, pay ways, who owns ideas, keeping secrets, protections, and parts that keep contractor free and lower control signs.
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 metricsShows how to set up record systems that keep contracts, work statements, bills, talks, and work data safe, and how to get ready for checks or court by showing steady, well-kept practices.
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 testLooks at big laws and rules, like IRS 20-point guide, federal real economy test, and California ABC test types, showing how each looks at control, need for help, and business freedom.
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 paymentsTells about daily ways to support real business links, like using contractor groups, many customers, own time plans, separate bills, and not watching like employees, tools, and work checks.
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)Introduces usual law and rule tests used by IRS, U.S. Labor Department, and California groups, comparing their parts, aims, and ways to enforce when deciding employee or 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 liabilitiesLooks into money and law problems from wrong classification, like old pay, unpaid extra time, worker taxes, fines, extra charges, benefit pays, and risks for unemployment and work injury claims.
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 workExplains how California checks control, fitting into business, money risk, giving tools, and how long the work lasts when telling employees from independent contractors under main state rules.
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
