Arrangements like Stanfield’s are looking more uncertain after a California Supreme Court ruling on independent contractors in April. That unanimous decision, adopting a new “ABC test” for defining employees, threw nearly three decades of legal precedent up in the air.
It could take years, and plenty more litigation, to sort through all of the implications of the case. Business groups estimate, based on federal labor bureau data, that there are nearly 2 million Californians classified as independent contractors — ranging from truck drivers to construction workers, hairstylists to journalists.
Stanfield worries the decision could wipe out the lifestyle she’s built for herself, which she said allows her to earn more money than she did in a traditional job while working on her own terms.
So does the California business community, which is facing down increased costs for salaries, benefits and regulations, such as minimum wage and overtime, if more workers are declared employees. It is now intensely lobbying the Legislature to suspend the court ruling and develop its own method for determining who is an employee.
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