Determining whether a California worker is an independent contractor or an employee has never been an exact science, with a lot riding on correct classification. But the California Supreme Court recently tried to simplify the issue by adopting a new “ABC” test for California, at least for claims under the IWC Wage Orders for minimum wage, overtime pay, and meal and rest period violations.
Updated June 17, 2015: The California Labor Commission has found that a driver for Uber in San Francisco is an employee of the company.
Deciding whether to treat workers as employees or independent contractors is tricky in general and even more so in the context of the new so-called sharing economy. In recent decisions, courts have refused to resolve whether the drivers for Lyft and Uber should be treated as employees or independent contractors, leaving it for juries to tackle the question. And the answer could majorly impact the companies’ highly successful business model.