NCA Alert: California Independent Contractor Legislation

Published Friday, June 21, 2019
by Joe Trauger

In response to a California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court, legislation that would narrow the definition of independent contractor status has passed the California Assembly and been sent to the state Senate for consideration. The bill presumes a worker is an employee unless the entity hiring the worker satisfies a three-factor test or is specified as exempt in the language of the legislation. All three factors of the so-called ABC Test must be met in order to classify the worker as an independent contractor. Those factors are:

  • The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
  • The person performs work that is outside the usual course of the hiring entity’s business.
  • The person is customarily engaged in an independently established trade, occupation or business of the same nature as that involved in the work performed.

One aspect of the legislation that is particularly troubling is the fact that it would effectively prohibit independent contracting even in circumstances and industries where longstanding practice has been to augment an employer’s workforce and services with independent contractors. This is relevant in the club community due to the use of caddies or staffing services.

NCA is working with other national associations in the golf community on the issue and we encourage you to reach out to your state senator to express your concerns about the legislation while the California Senate is considering the bill. We will keep you updated on this bill. If you have questions about this or any other issue, please contact NCA Vice President of Government Relations, Joe Trauger, at .

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