California Tightens Enforcement on Foreign Companies’ Use of Independent Contractors

This week, the California Labor Commissioner’s Office (DLSE) issued a new enforcement bulletin targeting the misclassification of independent contractors by foreign-owned companies in logistics and manufacturing sectors. Under Assembly Bill 5 (AB5), improper classification may result in penalties, back taxes, and labor liabilities.

OneLink Solution advises new market entrants—especially Asian firms in the ramp-up phase—to carefully review contractor agreements, time tracking practices, and management control to avoid de facto employment status.

Recommended actions:

• Audit current workforce roles and hiring models

• Consult legal counsel on independent contractor boundaries

• Separate employment, freelance, and project-based roles with compliant structures

OneLink offers compliance audit & workforce adjustment consulting to ensure smooth local operations and labor law adherence for cross-border companies.