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