Revamped Business-To-Business Exceptions Effective September 4, 2020, Assembly Bill (AB) 2257– through Labor Code section 2776 – modifies and expands exemptions for bona fide business-to-business contracting relationships from the severe ABC independent contractor test. The more-forgiving Borello multi-factor balancing test will continue determine contractor vs. employee status for such associations. A business entity providing services […]
California Remodels Exceptions to Its Strict Independent Contractor Test Beginning with the California Supreme Court’s Dynamex Operations West, Inc. v. Superior Court decision (April, 2018) and continuing with the passage of AB 5, effective January 1, 2020, state policymakers have sought to limit the definition of “independent contractors” under a severe ABC test. The trend […]
Uber and Lyft’s Last-Minute Reprieve From Order to Convert Drivers to Employees As a San Francisco judge had directed that Uber and Lyft convert their drivers to employees by August 21, 2020, the rideshare giants were ready to shut down their California operations unless the Court of Appeal put that order on hold. See, Traffic […]
California Wants Uber and Lyft Drivers as Employees It seemed like a good idea at the time: the rapid growth of Uber-style “gig economy” business models ostensibly offering a win-win of worker freedom and consumer convenience. Yet, California government came to another conception of such arrangements: presumed exploitation. Hence enter AB 5 and its hardball […]
Federal Court Denies Uber Request to Stop AB5 In a blow to the gig economy, a Los Angeles federal court has ruled that Uber, Postmates and two individual plaintiffs are unlikely to succeed on their constitutional challenges to AB5. Olson v. State of California (Olson). While noting the potential harm Uber and the other plaintiffs […]
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, […]