Category: independent contractor

First Time Entrepreneur Workshop – Saturday September 15th!

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Crowley Corporate Legal Strategy and the LA Venture Association (LAVA) are pleased to announce the next First Time Entrepreneur training program. The program is open to entrepreneurs that are starting companies in areas that are likely to draw venture capital investment. The program is not open to service providers.

During the five hour program, you will learn how to:

  • Determine the value of your company
  • Put together a capitalization table
  • Understand how VCs screen potential investments
  • Understand the differences between trademarks, copyrights and patents and when you need them
  • Choose and work with co-founders
  • Network at startup events — the right way

Julie Pantiskas of Pasadena Angels will also be the guest investor speaker.

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For more information and to purchase tickets, visit: https://www.lava.org/events/first-time-entrepreneur-workshop-1

ENTREPRENEUR WORKSHOP

Join us on Saturday September 15th for our next First Time Entrepreneur workshop!

The program is open to entrepreneurs that are starting companies in areas that are likely to draw venture capital investment. (The workshop is not applicable to service providers).

TICKETS: https://www.lava.org/events/first-time-entrepreneur-workshop-1

During the workshop you will learn how to:

  • Determine the value of your company
  • Put together a capitalization table
  • Understand how VCs screen potential investments
  • Understand the differences between trademarks, copyrights and patents and when you need them
  • Work with co-founders
  • Network at startup events — the right way

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CLIENT BULLETIN: California Supreme Court Changes Standard for Classifying Workers as Independent Contractors

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CALIFORNIA SUPREME COURT CHANGES STANDARD FOR CLASSIFYING WORKERS AS INDEPENDENT CONTRACTORS

On April 30, 2018, the California Supreme Court changed the standard used to determine whether a person is an independent contractor or employee of a company.

The Dynamex Operations West, Inc. v. Superior Court case centered around whether delivery service drivers for Dynamex were independent contractors or employees. For the past 30 years, companies relied on a multi-factor test in California that focused on whether the company had control over the how the work was being completed to classify a worker. Dynamex, also relying on this standard, argued that their drivers were independent contractors because the drivers set their own driving schedules, used their own vehicles, had the ability to decline delivery assignments and could work for multiple companies.

The Supreme Court, however, adopted a new standard in the Dynamex case and ruled that the drivers were in fact employees and allowed the drivers to be certified for a class action lawsuit.

The new “ABC test” will likely make it difficult for companies to classify workers as independent contractors in California because it presumes all workers are employees unless the company can demonstrate that the worker:

A). 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 such work and in fact; and

B). performs work that is outside the usual course of the hiring entity’s business; and

C). is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

Part A of the test includes similar language from the previous test with respect to control; however Parts B and C impose new restrictions on companies being able to classify a worker as an independent contractor. For Part B, the Supreme Court provided an example that a plumber or electrician who is hired by a retailer to perform maintenance work at a retail store is truly an independent contractor because the work being provided is outside the usual course of the retailer’s business. Part C is designed to identify those workers who have decided to go into business for themselves, regardless of whether the worker has actually formed a separate entity.

With this new standard in place, companies should reevaluate existing agreements with independent contractors to ensure whether these workers are indeed independent contractors under the new ABC test or should now be classified as employees and afforded the benefits of an employee.