More States Are Cracking Down on Misclassification of Contractors

California passed legislation that makes it significantly harder to classify workers as independent contractors. The ‘ABC’ test is used to determine whether someone meets the exception that they are an independent contractor. This test is significantly stricter and has led to companies going under as a result of misclassification lawsuits.

More States are following California’s lead—New York and New Jersey are considering similar legislation.

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