In California, the California State Labor Board has transmuted
contractors into employees, if the contractors are required to assign
all work product as a "work made for hire", and found it to be a
violation of California Labor Code Section 3351.5(c) and California
Unemployment Insurance Code Sections 621(d) & 686.
Contractors or any non-employee working for your business, who is
subject to a "work made for hire" clause, may be reclassified as an
"employee" for unemployment and disability insurance purposes.
California businesses would then be liable for failure to submit
payroll deductions for the contractor's unemployment and disability
insurance, possibly including late fees.
Prodigy Law suggest that businesses require all employees to sign
a new Non-Disclosure Agreement that provides legal language to the same
or greater extent as the following:
"contractor warrants and provides for all copyrightable works created
during the scope of this Agreement, an exclusive, irrevocable,
royalty-free, perpetual, non-expiring and fully paid license to [your
business] with all right, title and interest worldwide, with rights to
sublicense through multiple tiers of sublicensees, to distribute,
reproduce, make derivative works of, publicly perform, and publicly
display in any form or medium, whether now known or later developed,
make, have made, use, sell, import and offer for sale".
*PRODIGY LAW ARTICLES ARE CREATED BY DENNIS W. CHIU ARE FOR INFORMATIONAL AND EDUCATIONAL PURPOSES
ONLY. ANY SUGGESTIONS CONTAINED IN THE ARTICLES IS ONLY THE GENERAL
OPINION OF DENNIS W. CHIU. PRODIGY LAW ARTICLES ARE NOT WRITTEN WITH
ANY SPECIFIC FACT PATTERN OR CASE IN MIND. THEY DO NOT REPLACE
ORIGINAL LEGAL RESEARCH AND CONSULTATION WITH AN ATTORNEY REGARDING
YOUR SPECIFIC MATTER OR CASE. PRODIGY LAW ARTICLES ARE PRESENTED "AS-IS", AND DO
NOT GUARANTEE THE ACCURACY OF THE INFORMATION CONTAINED THEREIN, SINCE
CASE LAW AND LAW CAN CHANGE RAPIDLY.