Construction is big business in California, and it is a complicated business everywhere. From foundations to rooftops, from plumbing to interior design, new buildings take an army of workers possessing a wide variety of skills. It is no surprise that most construction work is done by contractors.
A new California judicial ruling that clarified the definition of independent contractors has many small business owners worried about the consequences. The new test of contractors is an "ABC" list to check if a worker is getting these done that are outside an employer's typical scope and level of engagement with the worker.
This new litmus test is bound to affect contractors and other construction-related employers, as they often hire skilled personnel for short periods of time on specific projects. The ruling will no doubt also tighten the needs of employers to keep complete records of all work done and employees engaged.
The ruling centered around a company hiring truck drivers as independent contractors. However, the general goal of the company to provide transport means that those drivers are now considered full employees. Many construction companies will also have to reanalyze their relationships with employees.
If an employee or employer is unsure of status in or around the construction industry, an attorney can help clarify the appropriate laws and help people engage in legal action to defend their rights. A lawyer may be able to end or prevent disputes between workers and employers, helping to keep construction projects on track. Not only can this prevent problems, but stopping disputes can also help the company the save money and its reputation.