Labor/Employment
May 11, 2026
Who is an "employee" under the CalPERS common law test? The stakes are too high not to know.
CalPERS settled a seven-year dispute over post-retirement work restrictions after a judge barred recovery of alleged overpayments, but the case left unresolved who qualifies as an employee under state retirement law.
CalPERS contracting agencies often require independent contractors (contracted through a private agency) to perform jobs requiring particular skill and experience not found within the agency's workforce. When the independent contractor is also a CalPERS retiree, it is imperative that the agency understands the important distinction between an "employee" and "independent contractor" under the Public Employees' Retirement Law, as this distinction determines whether the individu...
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