California Basketball Officials Association Faces Worker Misclassification Lawsuit

Independent contractors or employees? The distinction is more than just a label. It determines whether workers receive crucial labor protections like minimum wage, overtime pay, workers’ compensation and unemployment benefits. Although working as an independent contractor has become increasingly common in today’s gig economy, workers can sometimes be misclassified. Misclassifying workers isn’t just unfair; it can have serious legal and financial consequences for both workers and employers. 

A new lawsuit filed under California’s Private Attorneys General Act accuses the California Basketball Officials Association (CBOA) of misclassifying its instructors as independent contractors. The case highlights a common issue across industries where employers attempt to sidestep labor laws and cut costs by treating employees as independent contractors.

Yvette Perry, a former instructor for the CBOA, filed the lawsuit in state court. She claimed the association controlled her work as if she were an employee but failed to provide her with the wages and benefits employees are entitled to under California labor law.

Perry said that as an instructor and instructional chairperson for the CBOA’s South Bay unit, her responsibilities involved developing new training programs, training new referees and assisting with the unit’s operation. The CBOA trains people to become basketball referees who officiate games across California, ranging from youth to semi-professional levels.

Perry said the CBOA determined pay rates, dictated job performance and required basketball instructors to adhere to its bylaws. Additionally, the association failed to reimburse instructors for business expenses, provided inaccurate wage statements, did not pay them for all hours worked or overtime.

The CBOA’s job requirements appear to align more with an employer-employee relationship than an independent contractor arrangement. The lawsuit also claimed Perry faced discrimination, retaliation and sex-based harassment, ultimately leading to her termination.

Worker misclassification remains a concern in California, where employees have strong legal protections that independent contractors do not. Employers often prefer to classify workers as independent contractors to maximize profits and avoid providing benefits and overtime. However, state law sets clear guidelines for determining whether a worker is an independent contractor.

California uses the ABC test to determine whether a worker is an independent contractor or an employee. If the employer cannot meet all three conditions of the test, a worker is presumed to be an employee.

Firstly, the worker must not be under the employer’s control and direction when carrying out the work. Secondly, the worker does work outside the usual scope of the hiring entity’s business. Lastly, the worker normally engages in an independent trade, business or occupation that provides the same type of services as the work being performed. If an employer fails to meet any of these three criteria, the worker should be classified as an employee, not an independent contractor.

In the CBOA case, the basketball instructors may not meet the ABC test’s conditions. If the CBOA sets pay rates, dictates how instructors perform their jobs and requires them to follow association policies, it could fail the test’s first prong. Additionally, if instructing new referees is a fundamental part of the CBOA’s operations, the association may also fail the second prong, further strengthening the argument that instructors should be classified as employees.

The CBOA case is part of a broader trend of legal action challenging worker misclassification. Employers that misclassify workers not only deny them rightful wages and benefits but also expose themselves to legal consequences, including lawsuits and state-imposed penalties.

Misclassification affects workers in many industries, from gig economy jobs to professional services.

Workers who suspect they have been misclassified or experienced wage violations should reach out to an experienced employment lawyer. They should document their job duties, pay structure and the level of control their employer exerts over their work. Evidence such as emails, work schedules and payment records can help build a strong case. Determining worker classification is not always straightforward, and an attorney’s guidance can be invaluable.

Misclassification is not just a technicality. It can mean the difference between having access to fair wages, benefits and legal protections or being left without recourse. If you suspect your employer has misclassified you as an independent contractor, Erlich Law Firm is here to help. Discuss your situation with an experienced Oakland employment lawyer and explore your legal options. Contact us today for a free initial consultation.