Commentary Bill threatens employer-contractor relationship

California businesses are once again on the defensive.

Senate Bill 1128, sponsored by state Sen. Sheila Kuehl, D-Los Angeles, has been circulating throughout both Houses and if approved, could create drastic changes in how California businesses operate. In effect, SB-1128 would make it almost impossible for businesses to avoid reclassifying independent contractors as employees.

Businesses have relied on the Employment Development Department to provide guidance in determining independent contractor relationships. Applying the common-law test was always a reliable method of classifying job status. That may change at the end of this year’s legislative session.

A recent California Supreme Court case, S.G. Borello