States

What You Need to Know About the AB 5 “Business-to-Business” Exemption 

From Lexology, Brigham M. Cheney provides an outstanding review of the “business to business” exemption from California’s AB5, the new statute that adopts the ABC standard for classifying workers as employees or independent contractors. Brigham writes: The “Business-to-Business” Exemption Is Perhaps the Narrowest AB 5 Exemption One of the exemptions in AB 5 is for…

The Dynamex Decision Is Retroactive (For Now) 

California

From JDSupra, Aaron Colby and Laura Heckathorn discuss a recent case in California in which the court said that the ABC test for determining if a worker is an employee or independent contractor which was adopted by the California Supreme Court in Dynamex, was retroactive. Aaron and Laura write: The Dynamex decision and the passage of AB…

Could 2020 Be The Year Of The California Copycats? Other States Line Up To Consider Misclassification Statutes

From Mondaq, Richard R. Meneghello discusses the possibility that California’s ABC test will be adopted by other states. Richard writes: Now, several other states have decided that they may want to consider adopting their own versions of the ABC test in the next legislative session. While we are still months away from the 2020 legislative…

Slow Your Roll: Federal Law Preempts California’s Latest Assault On Employment Arbitration Agreements 

arbitration agreement with green background

From Lexology, Robin Samuel and Christina Taylor provide a superb analysis of California’s prohibition of mandatory arbitration agreements and the likelihood that the prohibition is not enforceable. Robin and Christina write: At first glance, the law appears to render mandatory arbitration in employment agreements obsolete, and many have been quick to trumpet this “sea change” in California…

Mass. DFML on Contractors “25 Covered Individuals” Threshold

Massachusetts Map

From The National Law Review, Nancy L. Gunzenhauser Popper and Anastasia A. Regne discuss when independent contractors are included under Massachusetts Paid Family and Medical Leave Act. Nancy and Anastasia write: The Massachusetts Department of Family and Medical Leave (“DFML”) has been providing on-going substantive and procedural regulations and guidance to effectuate the state’s Paid…

New Jersey Is About to Take Another Step Towards Eliminating the Use of Independent Contractors by Providing Them with Benefits

Map Of New Jersey 3d Shape

From FordHarrison, Salvador P. Simao reports that New Jersey may be about to enact a law that would provide benefits to independent contractors and funds through contributions from the entities that hire independent contractors. Salvador writes: Executive Summary: The New Jersey Legislature appears poised to pass S67, the Portable Benefits Act for Independent Contractors, in the…

Court Uses 8-Factor Test To Hand Gig Businesses Victory In Next Round In New Prime Arbitration Battle 

From Mondaq, Richard R. Meneghello discusses the recent Massachusetts case which found that a DoorDash driver was not a “transportation worker” under the Federal Arbitration Act (FAA), was not entitled to the transportation worker exemption, and therefore an arbitration agreement between DoorDash and its driver should be enforced. Richard writes: U.S. District Court Judge Indira…

IL Passes Workplace Transparency Act 

Illinois

From JDSupra, Kevin Kelly reports on the Illinois Workplace Transparency Act that extends protections from harassment to independent contractors. Kevin writes: The Illinois Workplace Transparency Act (the Act), which passed the Illinois legislature in May and is effective January 1, 2020, amends the Illinois Human Rights Act in numerous ways with the goal of strengthening…

AB 5 Update: Joint Employment, Retroactivity, and Implementation Challenges

California

From Lexology, James A. Paretti, Jr., Bruce J. Sarchet, Michael J. Lotito and Patrick Colin Stokes discuss recent California cases that address joint employment and retroactivity of the ABC test under Dynamex. The write: Joint Employer Status. On October 8, 2019, the California Appeals Court for the First Appellate District held that Dynamex is limited in its application to whether a worker…