Legal Question in Employment Law in California

Re: ways to avoid workers comp

Your CPA sounds clever -- but, watch out. . . Sure, you can let your employees form an LLP -- just as you are free to contract with any company out there. . . The essence of the employment relationship is the amount of control you exercise. If you are contracting for their services, they negotiate the rates with you; and they control how they work -- they are also free to contract with other companies. . . if this LLP scenario is not what it seems -- in the end you are still in control as the employer -- you can get into a lot of hot water. . . for example, if you do not carry workers comp. insurance and the workers comp court determines that you were actually the employer, you could get sued in civil court for any injuries ocurring at work; and there would be a presumption that the injury resulted from your negligence (in civil court you would have to pay for pain and suffering and other costs that would not be owed in the workers comp system); you could also end up owing a hefty tax liability for not paying withholding, etc. . .