We spent considerable time discussing ridesharing companies like Uber as well as the implications of the law of agency on their business. Imagine you are joining a company where the business is buying and selling used cars. Your new employer, a California company called CarsFast, Inc., is in the early stages of growing and scaling its business. The CEO asks you to sit in on an important executive meeting. The topic to be discussed is whether the field agents that appraise used cars should be employees or independent contractors. Currently, there is one designated field agent in every major city in which CarsFast, Inc. does business. The field agents utilize their own vehicles for travel, and are not provided equipment to perform the inspections. However, all reports are sent to CarsFast, Inc., not the owner of the car. Each field agent makes approximately $175 per call, and they receive payment weekly for all calls that week after submitting their invoice. The appraisal process involves driving to a customer's home and providing a vehicle inspection and appraisal. There is no compensation paid to agents for gas/mileage or vehicle depreciation.

During the meeting, there are a number of individuals that voice support for treating the appraisers as independent contractors, so as to avoid operational expense of maintaining a workforce (including compensation, benefits, etc.) Toward the end of the meeting, the CEO invites your feedback . . . .

1. Provide an explanation of your understanding of the law (test) in CA with respect to classifying employees vs. independent contractors.

2. Apply the CA law to the CarsFast, Inc. situation. If possible, provide reference to how CA law has impacted other companies in CA that we have discussed.

3. Provide an explanation of any other test or law that may apply.

4. Apply that law to this situation, and evaluate whether non-CA jurisdictions might reach a different outcome or not.