Employee Misclassification: It Adds Up Fast
A company hires workers and calls them independent contractors. They sign agreements. They get 1099s. Everyone is aligned with what they are. Until they’re not. That’s exactly what happened in Dynamex Operations West, Inc. v. Superior Court —a case that reshaped how California looks at independent contractors and made one thing very clear: You don’t get to decide classification. The law does. Here’s the problem. In California, classification is not about what you call someone. It is not about what’s written in the agreement. It is not about what the worker prefers. And it is definitely not about what “makes sense” for your business. Classification is about how the relationship actually functions. And California applies that analysis aggressively. Employers rarely get tripped up because of their bad intent. It’s speed. It’s trying to solve real business problems in real time. “We just need someone flexible—a contractor.” “They’re paid a salary—exempt.” “They’re learning—inter...