Archive for the ‘Employee vs. Independent Contractor Status’ Category
WHAT IS A COMMISSION?
Definition is Particularly Important for California Employers, All Commission Wage Agreements Must Be in Writing by 2013 Effective January 1, 2013, California Labor Code 2751 directs that any employment contract that includes commission compensation must be in writing, setting forth “the method by which the commissions shall be computed and paid.” See, Employee Commissions, California […]
DEFINING EMPLOYEE COMMISSIONS
All California Agreements Must be in Writing by 2013 As we have reported, in a few short months (by January 1, 2013), California Labor Code section 2751 will require all businesses to ensure employee commission agreements are in writing. See, “Employee Sales Commissions: California Requires Written Agreements by End of 2012.” While it is a […]
A CALIFORNIA EMPLOYER’S GUIDE TO NEW LAWS
Personal Liability and Mandatory On-Line Flogging for Misclassifying Employees as Independent Contractors We recently warned of the economic risks for an employer who chooses to cut corners by classifying a regular worker as an independent contractor. A wide range of California and federal agencies have the power to impose back taxes, interest and penalties upon […]
INDEPENDENT CONTRACTORS AND EMPLOYEES
Avoiding Misclassification of Hired Workers in California For possible cost savings and ease in administration, businesses are sometimes tempted to classify people working regularly as “independent contractors” instead of “employee.” In California, as in other states, independent contractors are usually not entitled to most of the benefits that employer must provide employees, including minimum wage, […]
IMMIGRATION LAW REQUIREMENTS FOR EMPLOYERS
Federal law requires every employer hiring any individual in the United States to verify the prospect’s identity and employment authorization through completion of Form I-9, Employment Eligibility Verification. An employer must complete an I-9 form for every person hired, even if there’s just one employee in the business. It is improper for a company to […]
CALIFORNIA OVERTIME RULES APPLY TO NON-RESIDENT EMPLOYEES
The California Supreme Court has ruled that the state’s overtime requirements apply to work performed in California by non-residents. In Sullivan v. Oracle Corp., three non-resident Oracle employees worked in California as instructors and trained Oracle’s customers in the use of the company’s products. They sued the California-based company for underpayment of compensation under this […]
AT-WILL EMPLOYMENT AND WRONGFUL TERMINATION
California’s Labor Codes do a lot to protect employees but there are some laws that benefit employers as well. For instance, unless a company and an employee agree otherwise, their relationship is presumed to be “at-will.” As defined, this means there is no promise or obligation of continuing employment. Either the employer or employee may […]
UNDERSTANDING CHILD LABOR LAWS
Preventing the Summertime Blues (‘Cause There Ain’t No Cure…) Hiring a teen under age 18 involves some essentials: 1. Familiarity with Applicable Laws: Review federal and state laws on teen employment — especially the rules on what types of jobs teens are not allowed to perform. Many small businesses, and especially those just starting out, […]
WORKERS FREELY COMPETING WITH FORMER EMPLOYER
California Protections Found in Non-Disclosure Agreements (NDAs) Many states recognize a business’s ability to negotiate and enter contracts restricting a departing employee from taking a job with a competitor – or opening a competing business – within reasonable geographic limits and for a limited, reasonable time following the termination date. However, with very limited exceptions, […]
“ON-CALL” EMPLOYEES IN CALIFORNIA
Some Workers Must be Paid for Waiting Patience is a virtue, but it may also be a business cost. Depending on the circumstances, a company may be required to pay an hourly employee waiting for the call to come to work. California and federal law recognize the various distinct situations: – On-Premises Standby: An employee […]