About two months ago, the California Supreme Court issued a unanimous decision in the case Dynamex Operations West Inc. v. Superior Court that is likely to result in it being harder to qualify as an independent contractor.

More than ever, it’s critical that you take steps now to maximum your chances of passing what is likely to become a stricter vendor compliance process. Otherwise, it’s very likely that companies will demand that you do the work as a W-2 employee hired through a staffing agency. (Related video, “Friends Don’t Let Friends W-2”*)

Although this court decision directly affects only California companies, other states are likely to follow suit and use this ruling as a reference.  At the very least, it’s likely to make employers in other States more cautious when hiring consultants as independent contractors.