This blog article provides an overview of the relevant California and Federal laws and applicable legal tests for Business Owners with workers in California. The aim is to help you start to assess whether you are dealing with an Independent Contractor or an Employee. This area of employment law is highly litigated, multifaceted & complex. Misclassification is common, with potentially devastating financial & criminal consequences. Civil Penalties for misclassification apply at the California State and Federal level (which also has potential criminal penalties). We strongly recommend contacting our legal team to determine the best way to proceed if there is any grey area.