Independent Contractors in Los Angeles Dental Practices

Independent contractors are widely used in Los Angeles dental practices, but California has some of the strictest worker-classification rules in the country. Misclassifying a provider can lead to tax issues, penalties, insurance complications, and contract disputes. Whether your practice brings in temporary (locum) dentists, hygienists, or specialists, proper classification is critical. This guide explains the contractor–employee distinction and how Polished Legal helps Los Angeles practices build compliant, future-ready staffing structures.

  • Why Los Angeles Dental Practices Work With Polished Legal

    Dental practices in California must follow a unique regulatory framework. Owners across Los Angeles choose Polished Legal because we provide:

    • Tailored classification guidance grounded in California employment rules
    • Deep experience with Los Angeles dental staffing models
    • Support across multi-location California practices
    • Risk-mitigation strategies aligned with state-level enforcement trends
    • Contract drafting designed for California’s strict corporate practice standards

    We help Los Angeles practices create compliant structures that fit their staffing needs and long-term vision.

  • Independent Contractors in Los Angeles Dentistry

    Los Angeles is home to one of the largest dental labor markets in the country, with many practices relying on contractors for flexible staffing. Locum coverage, mobile specialists, and hygiene support are common across LA’s competitive and high-volume environment.

    California’s strict employment laws make it easy to blur the distinction between contractor and employee unintentionally. When a contractor works consistent hours, follows detailed practice protocols, or functions like staff, California regulators may view them as misclassified — even if both parties intended an independent role.

  • Contractor vs. Employee: California’s Tests and Trends

    California’s ABC Test

    Los Angeles practices are subject to California’s ABC test, which presumes a worker is an employee unless:

    A) They are free from control
    B) Their work is outside the practice’s usual business
    C) They operate independently in their own profession

    Important Exception for Licensed Dentists

    Licensed dentists (including associates, locums, and specialists) are exempt from California’s ABC test due to a specific carve-out under the California Labor Code (§ 2778(b)(2)). For these providers, the older, more flexible Borello multifactor test applies. This means legitimate independent contractor arrangements with dentists remain possible in California — provided the relationship is carefully structured to show true independence in practice, not just on paper. Dental hygienists and other staff, however, remain fully subject to the strict ABC test and almost always must be employees.

    Common Red Flags

    • Assigning set clinical schedules
    • Requiring participation in team training
    • Fully integrating the provider into staff workflows
    • Compensating in ways that mimic W-2 structures

    Local regulators frequently audit LA health-care businesses, making compliance especially important.

  • Compliance Obligations for LA Dental Practices

    Proper classification affects:

    • California payroll tax compliance
    • Malpractice and professional liability coverage
    • Insurance credentialing tied to LA-area dental plans
    • Practice sale transactions within the competitive Los Angeles market
    • Record-keeping requirements for state audits

    Misclassification is one of the most common compliance issues uncovered in California dental practices.

  • Contract Best Practices for LA Independent Contractors

    Strong agreements should reflect California laws and Los Angeles practice norms. They typically include:

    • Scope of services
    • Clinical independence language
    • State-compliant compensation structure
    • Malpractice coverage expectations
    • Record-access and charting rules
    • California-specific non-solicit considerations

    Your agreement must align with how the relationship functions day to day — something regulators in California focus on.

  • How Polished Legal Helps Los Angeles Dental Practices

    We support LA-area practices by:

    • Reviewing contractor relationships under California law
    • Drafting compliant agreements tailored to your operations
    • Advising multi-location practices expanding across LA County
    • Preparing practices for state audits or insurance review
    • Evaluating classification risks during practice acquisitions
    • Updating agreements as California laws change

Build a Compliant Foundation for Your Los Angeles Dental Practice

A sound contractor strategy protects your practice in one of the most heavily regulated states.
If your Los Angeles dental practice wants clear guidance on independent contractor compliance, Polished Legal is ready to help. Get in touch today!

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Common Questions About Independent Contractors in Dental Practices

  • What happens if I misclassify a provider in my California dental practice?

    Penalties can be severe: back wages, overtime, meal/rest-break violations, EDD unemployment and payroll tax assessments, Labor Code § 226.8 penalties ($5,000–$25,000 per violation), PAGA lawsuits, loss of malpractice tail coverage, and insurance-credentialing problems.

  • Does the contract language alone protect me if I call someone an independent contractor?

    No. California regulators look at the actual day-to-day relationship (“conduct controls”), not just the written agreement. The contract must accurately reflect how the relationship truly functions.

  • Do I still have to issue a 1099 if the dentist is legitimately an independent contractor?

    Yes. Properly classified independent contractor dentists receive IRS Form 1099-NEC (not a W-2), and the practice must comply with all federal and California 1099 reporting rules.