for joint employers and whether they were actually employees based on the nature of their employment , rather than independent contractors . The court applied an “ economic realities ” test based on Colorado law , which focused on determining how much control the employer had over the worker in the day-to-day relationship . In this particular situation , the “ totality of the circumstances ” determined the workers were , in fact , independent contractors .
In short , each state and jurisdiction has its own assessment to determine whether a worker is an independent contractor versus an employee based on the relationship of the parties . And , regardless of existing case law and in- dividual jurisdiction tests , the U . S . Department of Labor has proposed a rule that makes it more difficult to classify workers as independent contractors . This rule is expected to be presented to President Biden this spring . The proposed rule addresses economic factors of control in the relationship between the employer and the worker . It can be reviewed at : https :// www . regulations . gov / document / WHD-2022-0003-0001 .
As the landscape regarding employment continues to change , stay diligent to ensure the solution to your employment challenges does not ultimately become another problem . n
The court applied an “ economic realities ” test based on Colorado law , which focused on determining how much control the employer had over the worker in the day-to-day relationship .
REFERENCES 1 . See , e . g . Dynamex Operations W . v . Superior Court , 4 Cal . 5th 903 ( S . Ct . Cal . 2018 ) 2 . See , e . g ., S . G . Borello & Sons , Inc . v . Department of Industrial Relations , 48 Cal . 3d 341 ( S . Ct . Cal . 1989 ); Cal . Labor Code § 2778
AMY TRACY is a partner with Munson , Rowlett , Moore & Boone in Little Rock , Arkansas . She is licensed in Virginia and Arkansas and serves the spa industry in the varying aspects of compliance and litigation . She is active on LinkedIn at linkedin . com / in / amy-tracy .
44 PULSE n APRIL 2023