Author: Fisk C.
Date of Publication: 2019.
California, many other states, and the United States government, have laws imposing minimum
standards of employment (such as wages and hours), limited financial benefits for workers who
become unemployed or are injured in the course of employment, and benefits for employees after
retirement age or who become unable to work because of disability. Most of these laws define the
scope of their coverage by saying they apply to “employees.” Companies figured out that if they
reclassified their workforce as “independent contractors” they could avoid the considerable wage,
payroll tax, and other costs of complying with law. [View resource]
