Law Office of George R. Bravo
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Independent Contractor Assessment Tool (ICAT)

IS YOUR WORKER REALLY AN
INDEPENDENT CONTRACTOR?

Avoid Penalties & Misclassifications

The Independent Contractor Assessment Tool (ICAT) guides you through the relevant tests and exemptions to help you assess whether your worker is an independent contractor (IC) under California law and minimize the risk of misclassification penalties.

Misclassifying a worker as an IC will result in penalties that may include jail time and/or fines of $25,000 per violation. The specific penalties are listed further below.

Start using ICAT to minimize your risk of misclassification penalties.

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WHAT IS ICAT?

ICAT is an interactive questionnaire tool to help business owners assess whether their worker is an IC under California law.

HOW DOES ICAT WORK?

By answering a series of questions, you will be guided through the relevant tests and/or exemptions in assessing whether your worker is an IC. When appropriate, ICAT will also let you know when it is best to speak to an attorney.

ICAT ANSWERS COMMON IC ASSESSMENT QUESTIONS

  • What is the A.B.C. test? (A.B.C. test explained)

  • Who is exempt from the A.B.C. test?

  • What occupations are exempt from AB5?

  • What are the AB5 business-to-business exemptions?

  • What is the AB5 professional services exemption?

  • What is the Borello test? (Borello test explained)

BENEFITS OF USING ICAT

  1. Helps you assess if your worker is an IC (by default CA workers are considered employees)*

  2. Simplifies and explains the IC assessment process

  3. Navigates you through the relevant IC tests/exemptions

  4. Minimizes risk of the misclassification penalties below

    *ICAT only applies to assessing workers who either reside or perform work in California as ICAT exclusively operates using California law. ICAT should only be used to assess whether a worker is an independent contractor under California law.

    • If the misclassification was willful (voluntarily and knowingly misclassified the worker as an independent contractor), there are civil penalties ranging from $5,000 - $15,000 or between $10,000 - $25,000 per violation if there is a pattern and practice of misclassification (California Labor Code §226.8).

    • Liability for overtime premium and meal period pay (California Labor Code and Orders of the Industrial Welfare Commission)

    • Record-Keeping penalties of up to $750 (California Labor Code §226)

    • Exposure for tort liability for injuries suffered by employees without Workers Compensation Insurance (California Labor Code §3706)

    • Exposure for unfair business practices (California Business & Professions Code §17200)

    • Stop orders and penalty assessments pursuant to California Labor Code §3710.1

    • Tax liability and penalties

    • Criminal liability for failure to maintain Workers Compensation Insurance (California Labor Code §3700.5)

      • Up to one-year in jail and up to $10,000 in fines

 

Avoid Misclassification Penalties

Use ICAT below to assist you in assessing whether your worker is properly classified as an independent contractor and minimize your risk of misclassification penalties.


DISCLAIMER: ICAT provides general information and is intended to act as an informational guide. The results and contents of ICAT are not legal advice and no attorney-client or confidential relationship is formed by the use of ICAT. ICAT is a tool to aid in independent contractor assessments and is not a definitive determination of whether your worker is an independent contractor. ICAT only applies to assessing workers who either reside or perform work in California as ICAT exclusively operates using California law. ICAT should only be used to assess whether a worker is an independent contractor under California law.

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