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On October 13th, 2022, the U.S. Department of Labor issued a proposed rule changing the process for how Independent Contractors are determined. This rule seeks to determine if a worker is economically dependent on the employer or truly a business for themselves. To ensure you are staying abreast of legal regulations for independent contractors you hire, use the Six Factors Test.

The Six Factors Test

  1. Is the work an integral part of the employer's business?
  2. Does the worker's managerial skill affect their opportunity for profit?
  3. Is the relationship permanent or indefinite?
  4. What is the nature and degree of the employer's control?
  5. Does the worker use specialized skills, and do these skills contribute to business-like initiatives?
  6. Are investments by the contractor capital or entrepreneurial in nature?

 

If you are an employer employing independent contractors and want to ensure that you are in compliance with California state laws, give Bracy Hawkins, P.C., a call.

Legal Q&A

Q: How can an employment and labor lawyer help me negotiate an employment contract?


A: An employment and labor lawyer can help you negotiate an employment contract by reviewing the terms of the agreement and ensuring that they are fair and reasonable. They can also help you identify potential issues or areas of concern such as compensation, benefits, and the scope of work. As your council, their job is to negotiate better terms or additional protections to ensure that your rights and interests are protected.


Every month, we feature answers to the most common questions we're asked regarding our areas of law practice. Do you have a question you would like featured? Please send it to legalassistant@bracyhawkinslaw.com.


*Please note, sending in a question, receiving a response, or anything in this newsletter is to be taken as specific legal advice regarding your situation, nor does it provide an offer to represent you, nor is it intended to create an attorney-client relationship. An attorney-client relationship may only be established through direct attorney-to-client communication and the execution of an engagement agreement. The information provided in this newsletter is for educational purposes only and is not legal advice. You should consult with your attorney if you have any questions regarding your legal rights and obligations*.

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