The New ABCs of Employer Liability: Recent Changes to Employee-Independent Contractor Tests May Leave Some Businesses More Open to Liability

Image of two green signs on a pole. One sign points to the right and says "independent contractor," and the other sign points to the left and says "employee"

Photo Credit: https://cdn.cpapracticeadvisor.com/files/base/CSN/image/2016/04/16×9/640×360/Independent_contractors_1_.570f062a5d352.jpg.

By: Brettlyn Miller
Junior Associate Editor, American Journal of Trial Advocacy

The line between the classification of an employee and an independent contractor can be thin but important, especially in terms of vicarious liability for an employer.  While there exists a gray area between the two, one state recently tightened its differentiation.  California’s Assembly Bill 5 (“AB 5”) passed legislation late last year and became effective on January 1, 2020, as amendments to California Labor Code and Unemployment Insurance Code.[1] Continue reading “The New ABCs of Employer Liability: Recent Changes to Employee-Independent Contractor Tests May Leave Some Businesses More Open to Liability”