Be aware of CA wage and hour rules for domestic workers, personal attendants

When we think of California employers encountering complex issues during the COVID-19 pandemic, images of retail, service, and other types of businesses come to mind. But one special type of employer needs to be mindful of state law: a household employing workers such as nannies, chefs, security personnel, personal assistants, and personal caregivers. Here are some wage and hour issues for California households and families to consider as they cross the threshold to becoming an employer.

Can we classify household workers as independent contractors?

Traditionally, many households have employed domestic workers as independent contractors. Other than some very limited cases, such as an occasional babysitter, the approach is now fraught with huge legal risk in California (and was treacherous even in the past).

Governor Gavin Newsom recently signed Assembly Bill (AB) 5, which codified a three-part test to determine whether a worker providing services in California is an employee for purposes of the California Labor Code, the state’s wage orders, and the Unemployment Insurance Code. With some very limited ad hoc statutory exceptions, the law was very clearly designed to eliminate independent contractors in the state.