Photo credit: Marie-Lan Nguyen
The California Supreme Court has decided to implement a new, more stringent test to determine whether a worker is an independent contractor (IC) or employee. For club leaders in California, this decision will make it more difficult for clubs to classify workers as ICs.
ABC Test
The court has determined that employers in the state should use the “ABC” test to distinguish employees from independent contractors. Workers are considered independent contractors if they satisfy all of the following conditions:
- The worker must be free from the control and direction of the club in the performance of the work.
- The worker must perform work outside of the usual course of the club’s business.
- The worker must be engaged in an independently established trade, occupation or business.
This ruling only impacts employers in California, however, it provides another example of the importance of complying with independent contractor rules.
3 Ways to Avoid Misclassifying Independent Contractors
Have members hire ICs themselves, removing the club’s role
Golfers can now use apps like CaddieNow, which allow members to hire their own independent contractors to come to the club on-demand, limiting the club’s involvement and control.
Hire third party entities
Clubs can also use third party services such as a valet company, fitness company, etc. to fill club needs. For golf needs, companies like CADDIEMASTER provide third-party caddies to clubs for members to use, removing the club’s control.
Reclassify ICs as employees
A third alternative is to hire caddies , golf pros and fitness trainers as employees, allowing clubs have control over matters like work, training, discipline and pay, and bypassing independent contractor regulations.
Clubs in California should consult with their legal teams to ensure they are in full compliance of these regulations. If you have any questions on independent contractor classification and the ramifications of this decision, please contact NCA Vice President of Government Relations & General Counsel Brad Steele at [email protected] or 202-822-9822.
On June 7 at 2:00 p.m. ET, NCA will host “Employee Classification,” a webinar presented by labor attorneys Thomas Lenz and Cindy Arellano from Atkinson, Andelson, Loya, Ruud & Romo to help you navigate independent contractor classification rules. To attend, please click here.