Archive for the ‘Employee vs. Independent Contractor Status’ Category
THE MYSTERY OF IT ALL
Lony Chaney, 1920 Employed or Independent? California Offers AB5 Answers The hottest California employment question of late: do independent contractors still exist? The California Supreme Court’s 2018 Dynamex decision turned independent classification on its head, imposing a strict “ABC” contrary to decades of law and custom. The legislature followed suit with Assembly Bill (AB) 5, […]
WHAT’S NEW IN 2020 THAT’S FINAL, TENTATIVELY
Barring Successful Court Challenge, Federal Overtime Exemption Will Require Higher Salaries January 1, 2020 In 2016, the U.S. Department of Labor (DOL) issued a “Final Rule” more than doubling the minimum salary amounts for certain workers – administrative, executive, and professional, employees, as well as “highly compensated employees” (HCE) to qualify for overtime exemption under […]
BULLET DODGING PART 6
Real Estate Agent Exemptions From Stringent Limits on Independent Contractor Status New Labor Code 2750.3(d), effective January 1, 2020 as part of Assembly Bill (AB) 5, exempts real estate licensees, regulated under the Business & Professions Code (B&P), from the strict Dynamex ABC test for independent contractor classification. See, Dodging the Bullet (October 2019). Labor […]
BULLET DODGING PART 5
The Referral Agency Exception To California’s Strict Independent Contractor Definition When new Labor Code section 2750.3(g) goes into effect on January 1, 2020 as part of Assembly Bill (AB) 5, certain types of referral agencies may be able to avoid classifying associated service providers as employees under the uber-strict Dynamex ABC standards. See, California’s Independent […]
BULLET DODGING PART 4
Building Subcontractors’ Exemption From the Strict New Limits on Who is “Independent” When new Labor Code section 2750.3(f) goes into effect on January 1, 2020 as part of Assembly Bill (AB) 5, it will be possible for builders to exempt their sub relationships from the new highly restrictive Dynamex ABC standard for independent contractor classification. […]
BULLET DODGING PART 3
Effective January 1, 2020, a portion of Assembly Bill (AB) 5 — new Labor Code section 2750.3(e) — exempts bona fide business-to-business contracting relationships from the ultra-strict Dynamex “ABC” test for independent contractor classification.
BULLET DODGING PART 2
California’s “Professional Services” Exemption To Strict Independent Contractor Definition Licensed Beauticians Among the Eligible The product of Sacramento politics, specific “professional services” occupations will be exempted from the rigid “Dynamex ABC” standard for classifying independent contractors, California Labor Code 2750.3, effective January 1, 2020 (part of Assembly Bill (AB) 5). See, Dodging the Bullet (October […]
DODGING THE BULLET
The Industries and Professions Not Subject to California’s New Independent Contractor Restrictions Effective January 1, 2020, Assembly Bill (AB) 5 will dramatically extend the ultra-strict Dynamex “ABC” test for independent contractor classification. See, California’s Independent Contractors, Endangered Species? (October, 2019). However, a portion of AB-5, to become Labor Code section 2750.3(b), exempts several specific industries/licensed […]
CALIFORNIA’S INDEPENDENT CONTRACTORS
An Endangered Species by Newly Enacted “AB 5” Until April 2018, the 11-factor balancing test in S. G. Borello & Sons, Inc. v. Department of Industrial Relations (California Supreme Court) had long applied to classifying workers as employees or independent contractors. That court then dramatically changed the rules in Dynamex Operations West, Inc. v. Superior […]
CAUTIONARY TALES EPISODE 29
General Contractor and Property Owners Left Holding Bag Labor Code section 218.7, effective January 1, 2018, made general “direct” contractors (those delivering to property owners directly) responsible for wage payments to employees of subcontractors who fail to make those payments. However, direct contractors may be able to prevent such exposure through well-constructed written agreements with […]