Calif. Ruling Puts More Cos. At Risk For Wage Suits

Law360, New York (June 3, 2010, 7:41 PM EDT) -- A California Supreme Court ruling last month in a case brought by seasonal agricultural workers expanded the definition of employer in the Golden State, putting an array of businesses that use outsourcing or other creative working arrangements in plaintiffs attorneys' crosshairs, lawyers said.

The long-awaited May 20 decision in Martinez v. Combs, which adopted the Industrial Welfare Commission's definition of "employer," is one more reason companies should be careful about when and how they classify workers as independent contractors, lawyers warned.

While California's highest court ruled...
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