California courts generally think that a worker is a worker, unless the alleged employer proves that the worker is an independent contractor. In determining the status of an independent worker or contractor, the courts consider a number of factors that complement and inform the provisions of the California Laboratory Code. In general, there are fewer problems with the mis-ranking of an independent contractor as an employee, as most government authorities and third parties are more likely to claim that an independent contractor is actually an employee, as opposed to the other way around. It is also possible that the employee makes his classification punishable by compensatory measures. It is much more complicated to defend a claim by an independent contractor who claims that he should have been treated as an employee than the other way around. Nevertheless, there have been tax cases in which an employee has successfully demonstrated that he or she is being treated more appropriately as an independent contractor. Always a subject at the ICA is the subject of bad behavior insurance coverage. Both the independent contractor and the anesthesia group must have defence and compensation coverage for all claims arising from the contractor`s action or omission, while providing services to the client. Ideally, the ICA indicates that the contractor provides coverage, but sometimes the client provides coverage for practical and financial reasons. In this case, it is advisable to include in the ICA an explanation of why these costs are borne by the customer. Ultimately, the most important factor in deciding whether a person should work in either category is control. To the extent that the anaesthetist group has greater control over the physician, it is best considered an employee.
The importance of control in the classification of workers necessarily creates tensions. The practice clearly wants to control those who treat patients for convenience, quality, compensation and other reasons. However, to the extent that the practice gives more control (or does exercise greater control, regardless of contractual terms), the risk of “reclassification” is greater. 1. Representing the independent contractor indicates that he is a qualified physician duly licensed to practice medicine in all legal systems in which he is required to perform his duties in accordance with this agreement, including, but not exclusively, the State (s) of Louisiana. The independent contractor also ensures that it is not currently subject to any professional disciplinary proceedings by public or federal authorities or disciplinary measures taken by hospitals or other hospitals in a jurisdiction. Anaesthetist groups must also understand that AB 5 (Gonzalez) applies to the old Borello regulations for independent contractors, but CRNA remains subject to the strict ABC test. One of ABC`s three factors is that the services provided by the contractor are “outside the usual history of the recruitment company`s activities.” If this company is anesthetized, the group cannot pass the test. On April 30, 2018, the California Supreme Court issued its ruling in Dynamex and adopted in California a new standard for classifying workers as employees or independent contractors, called the ABC test. The ABC test requires a recruitment organization to provide proof that the following three requirements are met so that a worker can be properly classified as an independent contractor: For more information on this topic, see my article, Bringing a new partner into a medical practice.