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 Circuit Court of Appeals concluded in Olson… Read More
Posts Tagged With: independent contractor
California Superior Court Judge Declares Prop 22 Unconstitutional
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” rather than employees – was unconstitutional. According… Read More
California Supreme Court Rules That Dynamex Applies Retroactively
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” and announced in the Court’s 2018 decision… Read More
Governor Newsom Signs AB 2257 Granting New and Expanded Exemptions to California’s Independent Contractor Law (AB 5)
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 workers because the new “ABC Test” was… Read More
Governor Newsom Signs AB 5 and Codifies Dynamex’s “ABC Test” for Independent Contractors
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 the California Supreme Court, in its landmark… Read More
Independent Contractors Remain Dangerous for California Employers
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 court explicitly refused to decide was whether… Read More
Dynamex “ABC Test” Limited to Wage and Hour Claims Only
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 worker to properly considered an independent contractor,… Read More
CA Supreme Court Delivers Bombshell Ruling — Even Harder Now for Employers to Classify Workers as Independent Contractors
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 independent contractor by one state agency but… Read More
Startups Prefer Employees Over Independent Contractors?
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 new trend among startups now to classify… Read More
Delivery Drivers are Employees, Not Independent Contractors
In yet another example of the challenges and difficulties involved in using independent contractors, today the Ninth Circuit ruled in Ruiz v. Affinity Logistics that delivery drivers for Affinity are employees rather than independent contractors. In reaching this decision, the Ninth Circuit reversed the lower court’s ruling which concluded that the drivers were employees. The lower… Read More
