New California Labor Laws May Impact How You Manage Your 1099 Contractors

1 min read
WorkMarket Editorial Team
WorkMarket Editorial Team
January 08, 2015
New California Labor Laws May Impact How You Manage Your 1099 Contractors


New year, new rules. At least that’s the case in California where some 900 new laws went into effect this week, courtesy of Governor Jerry Brown and the California legislature.

Of the 21 new labor laws passed in California, there was one in particular that caught our attention. It’s called AB 1897 and it may impact how you manage your freelancers and independent contractors. The new law essentially says that:

Under some circumstances, employers who use independent contractor workers are now jointly liable with the contractor for those workers’ wages and their workers’ compensation insurance.

If the contractor fails in those areas, the employer also can be held legally responsible.

It’s worth noting that the law does not apply to employers with a combined workforce of 25 or fewer total workers, including its own workers and that of a contractor.

“Because AB 1897 creates a major shift in responsibility…employers who use independent contractors at their worksites need to pay careful attention to its requirements,” says an article in the National Law Review.

WorkMarket provides the tools and audit trails your business needs to help mitigate compliance risk and adhere to state/federal labor regulations. We’d love to show you how.

Contact us today to schedule a free consultation or product demo!