Podcast Summary
Discussing the Changing Landscape of Employment Law with Cynthia Flynn: Cynthia Flynn, a Pasadena-based employment attorney with a unique background in psychology, discusses the evolving employment landscape, including the impact of 10.99 employees and new sexual harassment training rules, in an engaging podcast episode.
Cynthia Flynn, a Pasadena-based employment attorney, is making waves in the business community with her expertise and knowledge. Growing up in Orange County and attending UC Irvine, where she majored in criminology, law and society, and psychology, Cynthia always knew she would pursue a law career. Her unique background in psychology and social behavior has proven invaluable in her practice. Cynthia and Dawn, the podcast host, share a common interest in business and self-help books. In this podcast episode, they discuss topics relevant to Provisors' client base, including the changing landscape of 10.99 employees for business owners and the new rules regarding sexual harassment training. Cynthia's impressive background and shared passions make for an engaging and informative conversation.
Impact of Dynamex decision on 1099 employees: The Dynamex decision in California presumes anyone working for a business is an employee, and businesses must meet specific criteria to prove otherwise, particularly in showing the worker does not perform the same type of work the business entity does.
The employment landscape has significantly changed in recent years, particularly regarding the classification of 1099 employees. Cindy Flynn, an employment defense lawyer, shared her personal experience growing up in a family of entrepreneurs and the impact it had on her desire to help small business owners. She emphasized that the Dynamex decision in California now presumes that anyone working for a business is an employee, and to prove otherwise, businesses must meet specific criteria. The most challenging part of this test for businesses is proving that the person performing work for them is not doing the same type of work the business entity does. This shift has caused confusion and challenges for many businesses.
California's new test for worker classification: California's new test for worker classification includes factors like the worker's control over their work, nature of the work relationship, and whether they're in an independently established trade. Misclassifying a worker can lead to financial penalties.
Determining whether a worker is an employee or an independent contractor in California is not a straightforward process. The California Supreme Court established a new test last year, which includes factors such as the worker's independence in controlling their work, the nature of the work relationship, and whether the worker is engaged in an independently established trade. The test applies regardless of whether the worker is an individual or an incorporated business. Employing a misclassified worker as an independent contractor can result in significant financial penalties. While hiring an employee may be more costly due to employer taxes and insurance, the security of proper classification can save businesses from potential legal and financial repercussions.
Misclassifying an individual as an independent contractor instead of an employee can lead to financial consequences: Misclassifying employees as independent contractors can result in penalties, back taxes, attorney fees, and damages, potentially costing employers tens of thousands of dollars or more.
Misclassifying an individual as an independent contractor instead of an employee can lead to significant financial consequences for employers. This can result in penalties, back taxes, attorney fees, and damages, which can cost employers tens of thousands of dollars or more. Misclassification cases are most commonly related to wage and hour violations, but employers also face liability for sexual harassment and other torts. To minimize risk, employers should consult with their lawyers before hiring anyone and consider incorporating protective measures such as having the contractor be another corporation or paying the company instead of the individual. However, even with these measures, there is still a risk of lawsuits, especially if the individual is in the same line of work as the employer.
Maintaining Proper HR Practices to Avoid Legal Issues: Ensure proper insurance coverage and consult with employment attorneys to prevent costly litigation from misclassifying vendors or non-compliant HR practices.
For small business owners, especially startups, it's crucial to have a strong relationship with an employment attorney and proper insurance coverage. Classifying vendors as potential employees and ensuring vendor compliance is essential to avoid costly litigation. A basic video marketing company, for instance, should have general liability, directors and officers, and employment practices liability insurance. Consultations with employment attorneys can be done conveniently through phone, Skype, or email, making it easier for busy business owners to address HR concerns. Employment handbooks and agreements are also important aspects of HR management. The potential risks in employment law are significant, and proper preparation can save a business from potential bankruptcy.
New Sexual Harassment Training Rules for Small Businesses: Small businesses with as few as 5 employees must provide interactive sexual harassment training by a qualified professional to all employees by Jan 1, 2020, or face legal and financial consequences.
Sexual harassment training is no longer just a requirement for larger companies, but for businesses of all sizes, with as few as 5 employees. Every employee must undergo training, which must be interactive and provided by a qualified professional. Compliance is crucial, as failure to provide training could lead to serious consequences in the event of a sexual harassment case. Training can be done in person, via webinar, or through video, but the video must also be interactive. Companies have until January 1, 2020, to comply with these new rules, which also apply to nonprofits. It's important for small businesses to be aware of these changes to avoid potential legal issues and financial consequences.
California labor laws prioritize worker protection: California labor laws require businesses to prioritize worker protection, including sexual harassment training, and apply to business owners as well. A woman's request to terminate her ex-husband's spousal support after his lottery win illustrates the importance of understanding specific circumstances and laws in complex financial situations.
California labor laws, such as the requirement for sexual harassment training for businesses with five or more employees, prioritize the protection of workers over employers. This means that even if you are the business owner or founder, you are still considered an employee and subject to these regulations. While these rules may seem burdensome, they are designed to ensure a safe and fair working environment for all. Moving on to a lighter topic, an interesting case involves a woman who had been paying her ex-husband spousal support for six years, but when he won a $273 million lottery, she sought to terminate the payments. In California, the court would consider whether his needs were met and if he was now self-supporting. If so, the court could terminate spousal support. However, if the wife wanted to argue for reversed payments due to the marital standard of living during their marriage, she would need to present compelling evidence. Overall, this case illustrates the importance of understanding the specific circumstances and applicable laws when navigating complex financial situations.
Morals and personal circumstances impact legal decisions: Decisions in legal matters can be influenced by individuals' morals and personal circumstances, such as distribution of assets in a divorce or child custody cases. Ultimately, the outcome depends on the parties involved and their beliefs.
Morals and personal circumstances can influence the decision-making process in legal matters, such as the distribution of assets in a divorce. In the case discussed, the woman did not want anything from her ex-husband, despite their long history together and potential shared children. While some may argue that he should do the right thing and provide for his family, ultimately, the decision rests on the individuals involved and their personal beliefs. Another interesting topic raised was the potential implications of a rape case on child custody. The suspect would likely face criminal charges and would have a difficult time gaining custody, but the legal question of child support liability remains unanswered. The government's policy generally favors involving fathers in their children's lives, potentially leading to a requirement for child support payments.
Complexities of father's role in child's life: Despite legal complexities, the best interests of the child are prioritized in family court cases, but achieving that outcome can be nuanced and complex.
The desire for a father figure for every child may not always be driven by the government's concern for the child's well-being, but rather their financial situation. However, even in cases where a father has a history of violence, visitation or custody may still be granted due to legal complexities and the involvement of other family members. In extreme cases where the mother is incapacitated, a legal representative may speak on her behalf to prevent contact. Despite these complexities, it's important to remember that family court cases are unique and every situation is different. Ultimately, the best interests of the child are the priority, but achieving that outcome can be a complex and nuanced process.