“Fine Artists” and Other Clarified and Expanded Professional Services Exemptions Out of Sacramento’s political process has come passage of AB 2257 and new Labor Code 2778, effective September 4, 2020, providing a broader list of professional services exemptions from the rigid “ABC” test for independent contractor classification. See, Bullet Dodging Part 2 – California’s “Professional Services” […]
Revised Referral Agency Exception Effective September 4, 2020, Assembly Bill (AB) 2257 and Labor Code section 2777 broaden the “referral agency” exception to the state’s strict “ABC” definition of independent contractors. A referral agency is a “business that provides clients with referrals for service providers to provide services under a contract,” other than the specific […]
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 […]
New Fronts on California’s War Against Uber and Lyft Uber and Lyft have successfully battled suits seeking to prevent the companies from classifying their drivers as independent contractors, until now. On August 10 – in a misclassification action pending in San Francisco – the court issued a preliminary injunction requiring Uber and Lyft to convert […]
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, […]
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 […]
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 […]