• Paul Peter Nicolai

Employee Misclassification Spreads

Updated: Apr 17

Even though a software engineer’s corporation entered into a vendor agreement with a company engaging the engineer's corporation to do work for a third-party, the software engineer could bring a case for misclassification of his work as being independent contractor work and not an employee. This is because there was evidence that he actually did the work at the customer's site and was being supervised like one of their employees.

WHY THIS IS IMPORTANT… This case uses the new ABC test which is spreading around the country including, now, California. The court noted that failing to meet any one of the three prongs of the test meant the person should have been classified as an employee. It did not matter that the actual contract was with a corporation or that the contract was with a third party supplying services to a customer.

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