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Phil Di Tullio (US)

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In an August 1, 2019 post titled “Without Proper Enforcement, Even the Strongest Social Media Policies May Not Protect Employers,” we discussed how enforcement of corporate social media policies was paramount to protecting employers from liability stemming from employee violations of that policy. That post discussed how employers must take care not only to formulate comprehensive social media policies, but also to provide thorough training and ensure rigorous enforcement of those policies to its employees and managers.

In keeping with that theme, this article examines a specific illustration of the importance of maintaining and enforcing corporate social media policies.

With companies increasingly turning to social media to meet their advertising needs, employers must take a closer look at how they classify social media consultants and freelancers. Although larger companies may have internal social media departments, many small companies contract outside social media consultants who work on an hourly basis. Typically, companies were able to classify these social media consultants as independent contractors provided that the consultant had the right to control the manner and means of their work.

Last year, in Dynamex Operations West, Inc. v. Superior Court of Los Angeles, the California Supreme Court threw out this standard in favor of a new, more strict test called the “ABC test.” The “ABC test” makes it significantly more difficult for a business to classify their workers as independent contractors. In order to classify a worker as an independent contractor, a company must prove that:

The use of social media by employees is as fraught as it is widespread, and creates tremendous legal risk for the employer. Indeed, employers are wise to require adherence to a thorough policy regarding employee use of social media both inside and outside of work. The best policies will aim to sidestep potential legal landmines by preventing unauthorized disclosure of the company’s trade secrets and other confidential information, violations of the Federal Trade Commission Act arising from an employee’s promotion of company products, infringement of third party intellectual property rights, employee harassment, and privacy violations.