High Court IDs Test to Distinguish Employees From Contractors

California’s Supreme Court on Monday laid down a simple, three-part test to determine whether a person is an employee of an independent contractor, in a ruling that could have implications for workers’ compensation and the gig economy. The three-part test the court created in Dynamex Operations West Inc. v. Superior Court of Los Angeles County (Lee) asks whether a worker: Is free from control and direction in the performance of work. Is performing work outside the scope of the hiring entity’s business. Is customarily engaged in an independently established...