Legal Question in Employment Law in California
Are independent wholesale representatives provided the same benefits of law when they are employeed through an LLC they set up as when they are employedunder their own names in California?
1 Answer from Attorneys
People who work directly for a company as an Independent Contractor have a different status from people who work as employees of an LLC. Employees are different from independent contractors. It is not clear from your question exactly what benefits you are referring to, but I will anticipate you mean legal rights pertaining to terminations or unemployment benefits, 2 of the most frequent issues. (There are also different tax implications for independent contractors.) Referring to those 2 issues, the short answer is no, they do not have the same rights since in one case they are not employees at all. In termination situations, it is likely to be more of a contract dispute, whereas in employment situations it is likely to be a wrongful termination dispute. Regarding unemployment benefits, independent contractors are not granted benefits, though terminated employees may be granted benefits depending on the circumstances of their termination. Of course, the specific circumstances underlying your question are what will truly determine the answer to your question. I recommend you speak with an attorney in your area soon regarding the specific focus of your question to find out what your rights are.
Disclaimer: This response does not constitute legal advice. It is merely an opinion, and not intended to create, and does not create an attorney-client relationship. It is impossible to provide a legal opinion in response to questions without a comprehensive analysis of all facts and circumstances relating to the legal issues.