Total Articles: 10
Littler Mendelson, P.C. • November 24, 2019
On November 20, 2019, the Supreme Court of California announced it would review and decide whether its 2018 Dynamex decision has retroactive effect. The answer to this question could have a profound impact on any company using independent contractors in the Golden State.
FordHarrison LLP • October 16, 2019
Introduction: For a little over a year, California employers and courts have been wrestling with the impact of Dynamex Operations West, Inc. v. Superior Court, 4 Cal.5th 903 (2018), which dramatically altered the independent contractor landscape in the Golden State last year. Dynamex upended a long-standing multi-factor test which had been applied to determine if a worker was an employee or an independent contractor, ushering in the new “ABC test.” One of the main unresolved questions left in the wake of Dynamex was whether the new “ABC test” applies retroactively.
Littler Mendelson, P.C. • September 25, 2019
On September 24, 2019, the U.S. Court of Appeals for the Ninth Circuit certified to the Supreme Court of California the question of whether that court’s landmark 2018 decision in Dynamex v. Superior Court should be applied retroactively. In May 2019, the Ninth Circuit, in Vazquez v. Jan-Pro Franchising International, Inc., held that Dynamex had retroactive effect; in July 2019, however, the appeals court withdrew that opinion and indicated that it would instead ask the California Supreme Court to decide this state-law matter.
Jackson Lewis P.C. • July 26, 2019
Whether California’s recently adopted “ABC” test, used in the employee-versus-independent contractor analysis in cases involving California’s wage orders, must be applied retroactively should be decided by the California Supreme Court, a panel of the U.S. Court of Appeals for the Ninth Circuit has decided, withdrawing its controversial May 2, 2019, opinion. Vazquez v. Jan-Pro Franchising Int’l, Inc., 2019 U.S. App. LEXIS 21687 (9th Cir. July 22, 2019). The Ninth Circuit said it will certify that question to the California Supreme Court.
Ogletree Deakins • May 07, 2018
In a landmark decision, the Supreme Court of California adopted a new test to determine whether a worker performing services for a company is an employee or an independent contractor under California’s wage orders. The new three-factor test, known as the ABC test, will determine whether a company “employs” a worker under the wage orders, which address certain requirements for minimum wage, overtime, and meal and rest periods, among others. The ABC test, which has long existed in other parts of the country in different forms, has not previously been used in California.
Jackson Lewis P.C. • May 07, 2018
The California Supreme Court, in Dynamex Operations v. Superior Court, held that for purposes of claims under the California Wage Orders “engage, suffer or permit to work” determines employee status, thus requiring a defendant who disputes that a worker is an employee (rather than an independent contractor) to prove (A) the worker is free from control and direction of the hirer in connection with performing the work, both under contract and in fact; (B) the worker performs work outside the usual course of the hiring entity’s business; and (C) the worker customarily engages in an independently established trade, occupation, or business of the same nature as the work performed for the hirer.
Littler Mendelson, P.C. • May 02, 2018
In a groundbreaking new decision, the California Supreme Court announced a significant change in independent contractor law, adopting a modified “ABC” test for determining whether an individual is an employee under the Wage Orders.1 This new independent contractor test is modeled on Massachusetts’ independent contractor statute, which has been considered the strictest in the country.
Fisher Phillips • July 02, 2015
It’s a beguiling option. Companies that classify workers as independent contractors receive a number of benefits, including elimination of payroll taxes, workers’ compensation insurance, and unemployment insurance withholdings. Additionally, independent contractors are not entitled to overtime, double-time pay, or meal and rest breaks. The appeal of classifying workers as independent contractors can’t be questioned.
Ogletree Deakins • September 30, 2014
This weekend, California Governor Jerry Brown signed Assembly Bill 1897. This bill creates new Labor Code section 2810.3, which applies to all but a very limited number of companies with 25 or more employees (i.e., the “client employer”) that obtain or are provided workers to perform work within their “usual course of business” from companies that provide workers (i.e., “labor contractors”).
Fisher Phillips • December 21, 2012
There has long been a requirement for California employers, and out-of-state employers with employees in California, to report the hiring of new employees working in California to the California Employment Development Department’s (EDD) New Employee registry. These reporting requirements were designed to assist the state in locating parents who are delinquent in their child support payments and to assist in the early detection and recovery of Unemployment Insurance benefit overpayments.