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Friday, May 29, 2026

5 Costly Employee Classification Mistakes California Employers Make and How to Avoid Them: Your 5-Step Action Plan - JD Supra

The federal government is working on business-friendly changes to rules covering independent contractor arrangements and overtime pay requirements, but California employers may not reap the benefits. Employers in the Golden State are subject to labor and employment rules that are stricter or more protective for employees than federal laws, and navigating compliance can be tricky. This Insight will walk you through everything you need to know about recent federal wage and hour changes, the unique rules that impact your California operations, and your five-step action plan to avoid costly mistakes.

Quick Federal Recap

There are two big rules brewing from the US Department of Labor (DOL) that employers across the country should be tracking:

  • The DOL is advancing a rule to modernize its approach to determining whether a worker is an independent contractor or employee under federal wage laws. If finalized, the proposal from the Trump administration will make it easier for businesses to engage with independent contractors – including freelancers and gig workers – while providing clearer lines on what aspects of the working relationship can trigger employee status. (Read our full coverage on the proposal here.)
  • And earlier this month, the agency officially removed a Biden-era overtime rule from its regulations. The rule, which had already been struck down in court, would have raised the earnings threshold to nearly $60K for certain executive, administrative, and professional...


Read Full Story: https://news.google.com/rss/articles/CBMigAFBVV95cUxNZDRKV0ZCZlJaeFJlemlHc0pU...