Nearly a year ago, the U.S. Department of Labor issued an opinion that most “gig economy” workers are properly classified as independent contractors.

The gig economy labor market is made up of individuals who complete short-term contracts or freelance work, rather than performing services in a permanent job. Examples include everything from Lyft drivers and Etsy arts and crafts sellers to professional one-time consultants.

With the introduction of AB 5, California has deemed many of these workers to be employees, subjecting the employer to the same obligations an employer has with typical wage and hour employees. In addition to meeting payroll tax obligations, California employers must also comply with other obligations, including workers’ compensation requirements and minimum wage and hour laws.

Contact one of our attorneys to determine whether your workers are correctly classified in California and your obligations if you treat workers as independent contractors for Federal purposes, but as employees in California.