Monthly Archives: April 2023

Independent Contractors

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Individuals who are “independent contractors” are not considered employees for wage and hour purposes. California Assembly Bill 5 addresses the “employment status” of workers when the hiring entity claims the worker is an independent contractor and not an employee. Additionally,  Assembly Bill 2257, enacted in 2020, intended to clarify AB 5 and provide additional exemptions to the test for determining whether an independent contractor has been misclassified as an employee. Why it Matters:California’s labor law protects employees, but not independent contractors. Additionally, employees can go to state agencies such as […]

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Group Tax Exemptions

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While often used interchangeably, “nonprofit,” “tax-exempt,” and “501(c)(3)”  have distinct meanings under the law and different legal obligations.  Nonprofit organizations are created under state law but are not automatically tax-exempt from state sales and income taxes without filing for such an exemption through the Franchise Tax Board. Additionally, organizations are given tax-exempt status from federal income tax under federal law, through the Internal Revenue Service. Group Exemption:A group exemption affords the opportunity for a nonprofit organization to share the tax-exemption of another 501(c)(3) without the need for each entity to […]

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