Employers may be tempted to classify certain workers as independent contractors in order to avoid obligations associated with employees, such as payroll taxes, workers’ compensation coverage, paid leave and other legally required benefits. But California law presumes that all workers are employees, unless the employer can establish that…
California’s strict independent contractor law known as AB 5 – which prohibits businesses from classifying a worker as an independent contractor unless they can pass all three prongs of the stringent “ABC Test” – may soon be a thing of the past. On March 17, 2023, the Ninth…
In a stunning ruling late on Friday evening, California Superior Court Judge Frank Groesch ruled that Prop 22 – the most expensive ballot proposition in California history, which last year passed with 59% of the vote and allowed Uber and Lyft to classify their drivers as “independent contractors”…
California employers face even more liability now for misclassifying workers as “independent contractors.” That’s because the California Supreme Court recently ruled in Vasquez v. Jan-Pro Franchising, Inc. that the test for determining whether a worker qualifies as an employee or independent contractor – known as the “ABC Test”…
As readers of this blog know, one year ago California’s Governor signed AB 5 into law, which mandated the “ABC Test” for determining whether a worker was an employee or an independent contractor. The signing of AB 5 into law was a watershed moment for California businesses and…
On September 18, 2019, Governor Newsom signed AB 5 into law and, in the process, fundamentally changed the California economy by making it even harder for a business to qualify a worker as an independent contractor. The Dynamex Decision As readers of this blog know, in May 2018…
As we blogged about last year here, in May 2018 the California Supreme Court issued a landmark decision in Dynamex Operations West, Inc. v. Superior Court and dramatically changed the standard for determining whether California workers could be classified as employees or independent contractors. One key question that the Dynamex…
It was only 8 months ago that the California Supreme Court announced its bombshell ruling in Dynamex Operations West, Inc. v. Superior Court and announced the new test for determining when a worker was an employee or independent contractor. This new test was dubbed the “ABC Test” because, for a…
Determining whether a worker should be classified as an employee or independent contractor has always been a challenging task that frustrates our clients. There are a variety of legal “tests” that are used in different contexts in order to make that determination. A worker can be considered an…
We’ve all heard the stories about how startups tend to prefer to classify their workers as “independent contractors” rather than “employees.” Uber is a current and classic example of this legally risky phenomenon. But, according to today’s Business Insider, startups are apparently now second-guessing this strategy. There’s a budding…