Lesson 1Interaction with wage-hour laws, overtime rules, and state unemployment insurance requirementsAnalyses how worker status affects minimum wage, overtime, meal and rest breaks, and eligibility for California unemployment insurance, and how misclassification triggers overlapping wage-hour and benefit liabilities.
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)Provides sample clauses that support contractor status and identifies red-flag language, such as detailed control, supervision, mandatory training, and schedule requirements, that can undermine independent contractor classifications 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 structure independent contractor agreements in California, including clear scopes of work, deliverables, payment structures, IP ownership, confidentiality, indemnities, and clauses that preserve contractor autonomy and reduce control signals.
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 metricsExplains how to design recordkeeping systems that preserve contracts, statements of work, invoices, communications, and performance data, and how to prepare for audits or litigation by demonstrating consistent, well-documented 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 testReviews major statutory and regulatory frameworks, including the IRS 20-factor guidance, federal economic realities test, and California’s ABC test variants, highlighting how each framework weighs control, dependence, and business independence.
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 paymentsDetails operational practices that support genuine business-to-business relationships, such as using contractor entities, multiple clients, independent scheduling, separate invoicing, and avoiding employee-style supervision, tools, and performance management.
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 common law and statutory tests used by the IRS, U.S. Department of Labor, and California agencies, comparing their factors, purposes, and enforcement approaches when determining 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 liabilitiesExplores financial and legal consequences of misclassification, including back wages, unpaid overtime, payroll taxes, penalties, interest, benefit contributions, and exposure for unemployment insurance and workers’ compensation 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 evaluates control, integration into the business, financial risk, provision of tools, and duration of engagement when distinguishing employees from independent contractors under key state standards.
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
