Articles Tagged with “california business attorney”

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On April 30, 2018, the California Supreme Court sent shock waves through businesses using independent Contractors.  The Court substantially narrowed the existing 30 year old rule for classifying workers as independent contractors under California wage-hour law. In Dynamex Operations West, Inc., the California Supreme Court adopted the “ABC test” which greatly restricts when a worker qualifies as an independent contractor.

Image result for photo misclassification of independent contractor
Under the ABC test, it is presumed that all workers should be classified as employees. The hiring business can show that a worker qualifies as an independent contractor only if the business can show that the worker:

A) is free from the control and direction of the hiring business in connection with the performance of the work, both under the contract for the performance of the work and in fact; and

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Everyone who has ever used the internet to download a program or gain access to a service has had to read and agree to Terms of Service (TOS). In certain circumstances, they might be called an End User License Agreement (EULA). Both types of agreements accomplish roughly the same things: they outline the terms and conditions upon which a customer is permitted to utilize a good or service. Though often overlooked, they are integral cogs in the operation of a business and the delivery of products and services.terms-and-conditions.jpg

These types of agreements are binding contracts, just like any other. Specifically, they are called “adhesion contracts”. The difference between a regular contract and an adhesion contract is that in a regular contract, the customer is free to negotiate terms with the business entity. In an adhesion contract, the customer must agree to the terms outlined by the business entity, or else the customer will not have the privilege of utilizing the good or service at all. Another way to look at it is that typical contracts differ based on the interests of the parties negotiating their terms. An adhesion contract looks the same no matter whom the customer is.

Terms of Service are important tools for the successful business entity in that they make the customer operate by a defined set of rules that the business can dictate. Terms of Service also typically contain protections that the business entity doesn’t even know it needs: the so-called “fine print.” Fortunately, an experienced California business lawyer is an expert in drafting the fine print.