177 - Do Your Contractors Need to Be Employees?

On this episode, we're kicking off the Hiring Series with a look at California's strict independent contractor laws, its most recent amendments and exceptions, and how the law is paving the way for changes on a federal level.

When someone is classified as an employee it means their taxes are withheld by their employer, something that the state favors over contractors who come with the risk of not reporting all their income on their tax returns. Even if you are not in California, the California law has paved the way for independent contractor laws nationwide. Currently at Congress, the House has already passed a bill called the PRO Act that is being debated in the Senate. For more info, check out my blog post on AB5 and dealing with California's new contractor laws.