Legal Question in Employment Law in California

Independent Contractor

I've been working in a company who hires homecare providers for elderly clients. I was asked to sign a contract that says I am an IC. A susch, I am on 1099 just like the rest. They set the days, time of my work. I am entitled to holiday rate. I have no other patient or client except this one that I have been taking care of for almost 2 years. Recently, they're asking us to get a business license as IC from LA county.Apparently, this is to protect them in case they get audited by IRS or Labor Dept. Are we really supposed to be treated as IC and not employees? Can we refuse to get this business license since I honestly feel we are ore of employees and not ICs? I learned my employer doesn't want to pay payroll taxes so this is her recourse. If she gets audited by IRS, is she safe by showing that we have business license as IC? Please advise.


Asked on 11/26/08, 1:54 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Independent Contractor

You are in a medical professional position that frequently is staffed as IC status, if you are a licensed or credentialed RN, LVN, etc. As such, you are like a 'business', rather than an employee. If you get the license, you're agreeing with them, just as you did when you signed the contract. If you refuse, you risk termination of your contract. If you're terminated, you could file an unemployment claim and an unpaid compensation claim with the Labor Commissioner if you really think you are an employee, because you are not licensed or credentialed. Feel free to contact me if you are in SoCAL and need legal help in such claim and hearings.

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Answered on 12/02/08, 7:54 pm


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