Since the beginning of 2020, California employers and workers have been subject to AB5 that defines and restricts independent contractor status. And there have been challenges.
California Assembly Bill 5 was signed into law in September 2019 and went into effect on January 1, 2020. Prompted by the collective demands of professional drivers and worker advocates, the primary objective was to prevent mis-classification of workers.
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Topics:
independent contractors,
gig economy,
ABC Test,
Dynamex,
freelancers
AB 5, also referred to as the “gig worker bill,” went into effect on January 1, 2020 and requires that companies with independent contractors reclassify them as employees, with a few exceptions.
This new law was introduced by California assemblywoman Lorena Gonzalez and endorsed by Governor Gavin Newsom and signed by the Governor on September 18th, 2019.
The bill essentially expands on a ruling made in a case that reached the California Supreme Court in 2018, Dynamex Operations West, Inc. vs. Superior Court of Los Angeles.
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Topics:
independent contractors,
california labor law,
employee classification,
gig economy,
Dynamex
While the Department of Labor seeks to assure some businesses that "gig economy" workers are not employees, the California Supreme Court might disagree.
A series of related events are shaking up employers who make use of independent contractors and workers classified as such who feel they should be classified as employees. Additionally alarming for employers, especially in California, is the growing prospect of wage and hour lawsuits.
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Topics:
independent contractors,
dol fsla,
wage and hour compliance,
gig economy,
ABC Test
The National Labor Relations Board (NLRB) recently issued an employer-friendly decision for determining whether workers are employees or independent contractors.
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Topics:
independent contractors,
employee classification,
gig economy,
NLRA,
Title VII
While the Department of Labor inches closer to making a final decision on proposed overtime eligibility, the state of California is still debating the definition of an independent contractor. Both pending decisions will have a significant impact on California employers, workers and the state's business climate.
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Topics:
independent contractors,
overtime pay,
employee classification,
dol fsla,
final rule