In recent years, more and more nurses and other healthcare workers have been hired — or told they are being hired — as “independent contractors” instead of employees. On the surface, this might seem harmless. Some employers even suggest that working as an independent contractor gives employees more “flexibility” or “control” over their schedule. But here’s the truth: if you’re under the control of a hospital, clinic, or staffing agency, you are likely an employee under California law — and misclassification as an independent contractor can cost you thousands of dollars in lost compensation and benefits. At RN Counsel, we fight for nurses who have been misclassified, recovering back pay, overtime, expense reimbursements, and penalties. If your title says “independent contractor” but your job functions say “employee,” you may have a strong legal claim.
Employers sometimes misclassify employees as independent contractors to:
While this saves the employer money, it comes at your expense.
California law, under Assembly Bill 5 (AB 5) and its later amendments (AB 2257), uses the ABC test to determine whether a worker is an employee or an independent contractor. To classify you as an independent contractor, all three of the following must be true:
You are free from the control and direction of the hiring entity in connection with the performance of your work, both under the contract and in fact.
You perform work that is outside the usual course of the hiring entity’s business.
You are customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.
For most nurses and healthcare workers:
If you fail even one of the ABC test criteria, you are an employee — not an independent contractor. Additionally, even if you signed a contract agreeing to work as an independent contractor, that contract is not enforceable if your employer can’t meet all of the elements of the ABC test.
If several of these apply, you are likely an employee under California law.
Being labeled as an independent contractor often means losing:
No time-and-a-half or double time, even if you work 12+ hour shifts
No legally required breaks or penalties if missed.
You cover your own uniforms, equipment, mileage, and more.
No coverage for on-the-job injuries.
No access if your contract ends.
No accrual or legal right to use it.
Under California law willfully misclassifying a worker can result in:
If the misclassification was widespread (affecting many employees), the case may qualify as a class action, increasing potential recovery.
A nurse was hired by an “online platform” as an “independent contractor” to work per diem shifts, but:
Under California’s ABC test, she was clearly an employee. With legal representation, she recovered unpaid overtime, expense reimbursements, and penalties for missed breaks.
At RN Counsel, we have seen how misclassification robs nurses and other healthcare workers of fair pay, benefits, and basic workplace protections. Our attorneys understand the healthcare industry, the tactics employers use, and how to prove you are an employee under the law.
When you choose RN Counsel, you get:
If you have been classified as an independent contractor but perform the work of an employee, you may be entitled to substantial back pay, benefits, and penalties.
📞 Call RN Counsel today at (424) 252-4711 for a free, confidential consultation with one of our qualified attorneys. We’ll review your work arrangement, compare it to California’s legal standards, and take swift action to recover what’s rightfully yours.
In most cases, no — because nursing is part of the hospital’s core business.
Your legal rights cannot be waived by agreement if the classification is incorrect.
The tax form you receive does not determine your legal status.
Possibly, but only if the roles are completely different and meet the ABC test separately.
Generally, up to 3 years for wage claims, or 4 years if also pursuing unfair competition claims.
In most cases, no — because nursing is part of the hospital’s core business.
Your legal rights cannot be waived by agreement if the classification is incorrect.
The tax form you receive does not determine your legal status.
Possibly, but only if the roles are completely different and meet the ABC test separately.
Generally, up to 3 years for wage claims, or 4 years if also pursuing unfair competition claims.