Archive for the ‘Employee vs. Independent Contractor Status’ Category
INDEPENDENT CONTRACTORS, CALIFORNIA’S ENDANGERED SPECIES
Labor Commissioner Broadens Application of Dynamex Decision In Dynamex Operations West, Inc. v. Superior Court (2018), the California Supreme Court adopted a strict “ABC test” redefining “independent contractor”: The worker is free from the hirer’s control and direction in connection with the performance of the work, both under the contract in fact; The worker performs […]
MAKING DYNAMEX RETROACTIVE
Federal Appeals Court Rules New Independent Contractor ABC Test Applies Before It Existed Industries and employers throughout California have been grappling since April 2018 with the effect of Dynamex Operations West, Inc. v. Superior Court on their independent contractor relationships. Rejecting a multi-factor standard that had been in place since 1989, the California Supreme Court […]
MY WAY OR THE HIGHWAY
California At-Will Employees Bound to Lawful Policy Changes by Continuing to Work after Their Adoption In Diaz v. Sohnen Enterprises, California employer Sohnen Enterprises instituted a mandatory dispute resolution policy requiring that all employee claims be arbitrated. “Arbitration” is a private dispute resolution tool, bypassing court trials by jury. The company informed the employees of […]
INDEPENDENT CONTRACTOR OR EMPLOYEE?
California Legislature Dealing with Competing Proposals to Kill or Expand New Dynamex Test In 2018, the California Supreme Court’s Dynamex ruling drastically changed the criteria for independent contractor classification to determine entitlement to many employee rights and benefits. See, Independent Contractor Status in California Now Falls Under Radically Different Rules (June, 2018). Rejecting the long-established balancing […]
FOR WHOM THE BELL TOLLS…
KNOCK, KNOCK When It’s Your Turn For a Government Payroll Audit For California, the Employment Development Department (EDD) is responsible for the administration of unemployment and disability insurance, workforce training services and payroll audits. The agency has the power to impose significant, potentially fatal penalties for non-compliance. An EDD visit to look over pay practices […]
WHAT’S NEW FOR 2019 DON’T BE LEFT HOLDING THE BAG
Employers May be Liable For Unpaid Wages to Subcontractor’s Workers Section 218.7 of the Labor Code, effective January 1, 2018, made contractors responsible for wage and benefit payments to employees of subcontractors who fail to make those payments. It permitted a contractor to require proof of wage and benefit payments from subcontractors and to withhold […]
INDEPENDENT CONTRACTOR STATUS? IT DEPENDS
Radically New Dynamex Test Only Applies to Certain Employee Classification Cases This past spring, the California Supreme Court inexplicably tossed out its decades-old “multi-factor” independent contractor test in favor of a far more stringent three-part “ABC” test. (Dynamex Operations West, Inc. v. Superior Court). See, Independent Contractor Status in California Now Falls Under Radically Different […]
CAUTIONARY TALES EPISODE 13
Builders are on the Line When Subcontractors Underpay Employees The latest installment of California’s “wage theft” campaign targets the construction industry. On July 9, 2018, Labor Commissioner Julie Su announced citations against TB Penick & Sons, Inc. (Penick), a San Diego general contractor and its subcontractor Champion Construction, Inc. (Champion), a drywall and framing contractor […]
GAME CHANGER
Independent Contractor Status in California Now Falls Under Radically Different Rules The California Supreme Court has issued a landmark decision drastically redefining who can be classified an independent contractor. Dynamex Operations West, Inc. v. Superior Court. The new criteria potentially expose tens of thousands of businesses who have relied on the old rules to legal […]
INDEPENDENT CONTRACTOR OR EMPLOYEE?
It’s Not Really A Matter of Choice State and federal laws provide detailed standards a business must closely examine for who it can rightfully classify as an independent contractor and who needs to be an employee. Yet, it is not uncommon for enterprises and those they hire to just skip all that and – with […]