5 Signs You May Be Misclassified as an Independent Contractor in California

In recent years, the gig economy has exploded, with more and more workers being classified as independent contractors. While this arrangement can offer flexibility and autonomy, it can also lead to misclassification, depriving workers of important rights and benefits.

In California, the law surrounding independent contractor classification has undergone significant changes, making it more difficult for employers to classify workers as contractors. If you’re working as an independent contractor in California, here are five signs that you may be misclassified.

1. Your Employer Controls Your Work

One of the primary factors in determining whether a worker is an employee or an independent contractor is the degree of control the employer exercises over the work. If your employer dictates how, when, and where you perform your job, you may be misclassified as an independent contractor.

For example, if your employer requires you to work specific hours, provides detailed instructions on how to complete tasks, or closely supervises your work, these are indicators that you may actually be an employee. Independent contractors typically have more autonomy in determining how they complete their work.

2. Your Work is Essential to the Company’s Business

Under California’s Assembly Bill 5 (AB 5) and the subsequent Assembly Bill 2257 (AB 2257), a worker can only be classified as an independent contractor if they perform work that is outside the usual course of the hiring entity’s business. In other words, if the work you do is central to the company’s operations, you may be misclassified as an independent contractor.

For instance, if you work as a delivery driver for a food delivery service or as a content writer for a marketing agency, your work is likely integral to the company’s core business. In these cases, you may actually be an employee, not an independent contractor.

3. You Don’t Have an Independently Established Business

To be properly classified as an independent contractor in California, you must be engaged in an independently established trade, occupation, or business.

This means that you should have your own business entity, offer your services to multiple clients, and have the ability to profit or lose money based on your own business decisions.

If you work exclusively for one company, don’t have your own business infrastructure (such as a website, business cards, or multiple clients), and rely on the company for all your income, you may be misclassified as an independent contractor.

4. Your Employer Provides You with Equipment and Supplies

Independent contractors typically use their own tools, equipment, and supplies to complete their work. If your employer provides you with the necessary tools, materials, or equipment to perform your job, this may be a sign that you’re actually an employee.

For example, if you’re a graphic designer and your employer provides you with a computer, software, and other resources to complete your work, this could indicate that you’re misclassified as an independent contractor.

5. You Don’t Have a Written Contract

While not having a written contract doesn’t automatically mean you’re misclassified, it can be a red flag. A properly drafted independent contractor agreement should outline the scope of work, payment terms, and the relationship between the parties.

If you don’t have a written agreement or if the agreement contains provisions that are more consistent with an employer-employee relationship (such as non-compete clauses or strict confidentiality requirements), you may be misclassified as an independent contractor.

What to Do if You Believe You’re Misclassified

If you suspect that you’ve been misclassified as an independent contractor in California, it’s essential to take action to protect your rights. Misclassification can result in lost wages, benefits, and other protections afforded to employees under California law.

The first step is to gather evidence supporting your claim, such as emails, contracts, pay stubs, and any other documentation that demonstrates your working relationship with the company. You can then file a complaint with the California Labor Commissioner’s Office or consult with an experienced employment law attorney to discuss your options.

At TONG LAW, our California employment lawyers have extensive experience handling misclassification cases. We can help you understand your rights, get through the legal process, and fight for the compensation and benefits you deserve. If you believe you’ve been misclassified as an independent contractor, contact us today for a confidential consultation.