Dynamex Bites Back … and Sinks Its Teeth In: California Supreme Court Confirms Retroactive Application of the ABC Test
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Key Takeaways:
- The California Supreme Court has issued a decision holding that the ABC test adopted in Dynamex applies retroactively
- The ABC test, expanded under AB 5, makes it more difficult for California businesses to lawfully classify service providers as independent contractors under California's Wage Orders
- Businesses using independent contractors or franchisee employers should immediately review their independent contractor and franchise arrangements
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