States

Proposed bills threaten business for hairdressers, salon owners 

From the Auburn Reporter, Julee Broberg argues against changes to laws classifying workers as employees or independent contractors without reviewing how they might affect hairdressers and salon owners. Julee writes:  Intermediary employees. Contributing agents. Worker wage boards. This is the gobbledygook that hairdressers and salon owners like my wife, Julee, are trying to make sense of…

Indiana Supreme Court Rules Driver Not Employee Of Business Connecting Drivers With Customers 

Indiana

From JDSupra, Adam Lounsbury and Robert Frederick Seidler discuss a recent Indiana case in which a driver was found to be an independent contractor under the ABC test. Adam and Robert write: Q.D.-A, Inc. “is a business that connects drivers with customers who need too-large-to-tow vehicles driven to them.” The company acts as a matchmaker, matching the needs…

Ohio Limits Joint Employment Status For Franchisors 

From Lexology, Mathew A. Parker reports on the new Ohio statute that limits the liability of franchisors as joint employers of franchisees. Matthew writes: Ohio recently amended its definition of “employer” in order to limit the joint employer status of franchisors. Effective March 20, 2019, franchisors will not be considered joint employers with their franchisees unless one…

California Court Invalidates Arbitration Agreement With PAGA Waiver 

California

From JDSupra, Jennifer Santa Maria discusses a recent case in which a California Court of Appeal said an arbitration agreement was not enforceable because it contained a waiver of California’s Private Attorneys General Act (PAGA) claims and the clause could not be severed. Jennifer writes: On appeal, the California Court of Appeal agreed with the trial court, finding…

“Worksite Employer” Can Enforce Arbitration Agreement Against Employee of Temporary Employment Agency

California

In this unpublished opinion, a California appellate court said that the client of a staffing agency could enforce an agreement requiring arbitration against the employee of a temporary staffing agency. While this case cannot be cited or relied upon, the reasoning and citations are instructive: California Rules of Court, rule 8.1115(a), prohibits courts and parties…

Oklahoma Bill Would Adopt a Common-Law Test to Define ‘Employee’ for Unemployment Purposes

Oklahoma map with flag

The Coalition to Promote Independent Entrepreneurs reports that a bill was filed in Oklahoma to change the test for classifying workers for unemployment tax purposes. They write: The Coalition to Promote Independent Entrepreneurs applauds Oklahoma State Representative Mike Osburn (R-81) for pre-filing the Empower Independent Contractors Act of 2019, H.B. 1095. This bill would replace the flawed…

The Risky Business of Paying Physicians as Contractors

From Medscape, Jehan N. Jayakumar and Matthew M. Stokke discuss the challenges of paying physicians as independent contractors in California after the Dynamex decision. They write: Healthcare practices, in particular, customarily engage the services of licensed physicians and other healthcare providers as independent contractors. However, as the old adage notes: Just because everyone else is doing…

Oregon courier service to pay $3.2 million in driver IC misclassification case

Staffing Industry Analysts (SIA), the global advisor on staffing and workforce solutions, reports that a courier service in Oregon misclassified drivers and was required to pay $3.2 million for damages. SIA reports: A federal court ordered the owner of a Portland, Ore.-based courier service to pay $3.2 million for failing to pay minimum wage and overtime…

California Court Of Appeal Clarifies Application Of The ABC Test For Independent Contractors 

California

  From Mondaq, Thalia S. Rofos and William C. Sung discuss the recent case which limited the application of the stringent ABC test for classifying workers in California to non-wage order claims. Thalia and William write: In Garcia v. Border Transportation Group, LLP, the California Court of Appeal clarified that the ABC Test only replaced theBorello Test as applied to wage and…