Comstock's magazine 0818 - August 2018 - Page 49

It ruled that underwriters’ work is “not so distinct” from business — meaning, for example, they have other clients creating a product that the company sells — in this case in addition to the contracting company, advertise their ser- mortgages — and so they must be paid hourly. That decision vices, work by project rather than by time or have their own could open the door to other classes of workers challenging employees. Third, the worker must be free from substantial their exempt status: mid-level, white-collar, nonsuperviso- control by the employer over how and where they do the ry workers who don’t need a professional license to do their work. All three of those were part of the previous multifactor jobs, says Gary Goyette, an attorney at Goyette & Associ- test. But now, instead of being assessed mostly on whether ates in Gold River, which represents both employees and their contract workers have control, employers will also have employers. to be cleared on the other two factors. The seas also just got choppier for companies that use Many companies will have to rethink how they get work independent contractors. Until recently, labyrinthine but done. “It’s a landmark decision,” says Jennifer Randlett f lexible rules governed who could be hired as a contractor. Madden, an employment lawyer at Delfino Madden in Sacra- While the DIR listed at least 11 factors for determining if an mento. “The entire construct of the independent contractor independent contractor is legitimate, the primary factor was classification has changed. Every employer should be look- control: whether the company chose not just what work got ing at every contractor they use and figuring out what to do.” done, but “the manner and means” by which that happened. Lesser considerations included how long the arrangement MISCLASSIFYING PUTS COMPANIES AT RISK had lasted, and whether the work done was “part of the regu- Business owners struggling with classification isn’t new. lar business” of the employer. “When I do trainings, I’m amazed — there are still so many But a May 1 ruling by the California Supreme Court now smart people who don’t understand the rules,” Stevenson makes control just one element of a strict, three-part test for says. legally hiring a contractor. First, the worker has to perform Some owners f lub out of honest ignorance. Janelle Ar- a function that’s outside the usual course of the hiring com- sich, an HR consultant with Sacramento-based HR to Go, has pany’s business. Second, the worker must have their own a client whose office manager works through lunch and on Congratulations! InterWest’s 2018 Chairman’s Award Winners Each year, InterWest recognizes broker performance excellence with our Thomas G. Williams Chairman’s Award. Tom Williams provided the visionary leadership of the formation of InterWest in 1992. We proudly congratulate our 2018 recipients. Front Row: Sama Hershey Davis, John Hopkins, Jim Bulotti, Steve Carmassi, Chip Arenchild, Rich Pratt, Steve Williams Back Row: Brandon Muskopf, Mike Ryan, Craig Houck, Eric Isaacson, Derek Parsons, Garrett Yates, Cain Medina, Brian Seamans Not Pictured: Brett Faulknor, Cari Zieske, Dave Dias CA DOI License #0B01094 | www.iwins.com August 2018 | comstocksmag.com 49