Avoid Payroll Worker Misclassification at Monterey Car Week 2025

Why Event Companies at Monterey Car Week 2025 Should Use a Payroll Company to Avoid Worker Misclassification Penalties

As Monterey Car Week 2025 draws closer, event companies are ramping up preparations for one of the most high-profile automotive events in the world. But amidst the excitement, there’s a critical issue that can’t be overlooked: worker classification. In California, misclassifying gig workers as independent contractors—when they should legally be employees—can lead to serious legal and financial consequences.

In this blog post, we’ll explore why using a reputable payroll or skilled labor company is essential for event producers, especially those operating in California under AB5 regulations. We’ll break down what the law requires, the risks of non-compliance, and how companies can protect themselves during major events like Monterey Car Week.

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What Is Worker Misclassification?

Worker misclassification happens when a business wrongly labels a worker as an independent contractor instead of an employee. While this might seem like a harmless or even cost-saving measure, the implications under California law are substantial.

Independent contractors typically manage their own schedules, provide their own tools, and operate independently. Employees, on the other hand, are subject to oversight, direction, and control by the hiring company.

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California’s AB5 and the “ABC Test"

In California, Assembly Bill 5 (AB5) took effect in January 2020 and was designed to stop the widespread abuse of independent contractor status—particularly in gig economy roles.

To determine if a worker is truly an independent contractor, the ABC test must be applied. A worker is presumed to be an employee unless the hiring company can prove all three of the following:

- A: The worker is free from the control and direction of the hiring entity in connection with the performance of the work.
- B: The work performed is outside the usual course of the hiring entity’s business.
- C: The worker is customarily engaged in an independently established trade, occupation, or business of the same nature.

Most event workers—such as lighting techs, AV specialists, stagehands, and production assistants—do not meet these requirements, especially point B. They are doing exactly the kind of work that an event production company exists to do.

[Read more from the California Department of Industrial Relations](https://www.dir.ca.gov/dlse/faq_independentcontractor.htm)

Photo: Patriot Software

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Why Event Companies Are at Risk—Especially During Monterey Car Week

Monterey Car Week is a multi-day, multi-venue celebration involving car shows, auctions, VIP receptions, and luxury brand activations. Event companies managing these productions often bring on dozens (or hundreds) of freelance technicians, coordinators, and production crew members.

Here's the problem: if these workers are paid as 1099 contractors and not classified correctly, the company is exposed to:

- Penalties from the California Department of Labor
- Back pay for wages and benefits
- Unpaid employment taxes and insurance contributions
- Potential lawsuits from workers 

These risks are amplified during a large-scale, public event like Monterey Car Week, where labor usage is high and visibility from regulators is greater.

Photo: Whats Up Monterey

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How a Payroll or Skilled Labor Company Helps

Hiring through a professional payroll company or skilled labor provider ensures that workers are classified appropriately. These companies typically:

- Employ workers as W-2 employees
- Handle compliance with California labor laws
- Provide workers' compensation insurance
- Ensure payroll taxes are withheld and reported correctly
- Reduce the administrative burden on your production team

This is especially important in California, where the legal environment around labor compliance is strict and aggressively enforced.

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Real-World Example: Avoiding AB5 Issues at Monterey Car Week

Let’s say an event company is producing a luxury car launch party during Monterey Car Week 2025. They bring in a team of freelance lighting and sound technicians. If those workers are classified as independent contractors and later file complaints or audits occur, the company could face thousands in fines, back taxes, and legal costs.

On the other hand, if that same company partners with a skilled labor provider that legally employs those technicians, they’re protected. Not only are the workers covered by insurance and paid according to labor law, but the production team can focus on the event—not legal issues.

Don’t Gamble with Labor Law

California labor laws—especially AB5—aren’t optional, and the penalties for non-compliance are steep. If you’re an event company working Monterey Car Week 2025, partnering with a skilled labor or payroll company is the smart move. It’s not just about legal protection—it’s about professionalism, reliability, and peace of mind.

Avoid fines, stay compliant, and deliver an unforgettable event. Let the experts handle the workforce so you can focus on the show.

*Disclaimer: This blog post is for informational purposes only and is not regularly updated. It is your responsibility to stay informed about current labor laws and regulations in California. Mindwarp EPR does not accept liability for any actions taken based on the information provided.

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No need to stress—we’re experts in California payroll. Need AB5-compliant skilled labor for your next event? Let’s team up to build a crew that’s as outstanding as your production. Reach out to us today!

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