Legal questions focused on worker classification take on special significance in a state where some of the biggest and most visible on-demand companies were founded.
The California Supreme Court used real-world examples to explain its highly anticipated ruling that adopted a more structured test for how companies must classify their workers: A plumber who's hired to fix a problem in a retail store is an independent contractor. A cake decorator at a bakery should be considered an employee.
The ruling, with wide implications for the gig economy, put in place a new test that uses three distinct factors to determine whether a worker is an employee or an independent contractor. Monday's decision changes the standard from the more flexible one that had been used in the state since 1989.
Recommended For You
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
