States

CA Supreme Court Continues Its Assault On Arbitration Agreements

arbitration agreement with green background

From JDSupra, David Faustman discusses a recent case in which the California Supreme Court did not enforce an arbitration agreement because its was unconscionable. David writes: In One Toyota of Oakland v. Kho (“OTO”), the California Court struck down an arbitration agreement as “unconscionable,” and allowed an employee to proceed with administrative proceedings before the Labor Commissioner in…

How to Operate in California with Independent Contractors After AB5 Bill Is Signed Into Law

California

From JDSupra, Richard Reibstein provides an excellent summary of Assembly Bill 5, the bill that incorporates the ABC test into law. Richard writes: The latest version of Assembly Bill 5, which codifies the California Supreme Court’s Dynamex decision that was issued in April 2018, is about to become law.  Dynamex created a so-called ABC test requiring companies to satisfy…

California’s AB5: A Bill Adopting the ABC Test for Classifying Workers as Independent Contractors (with exceptions)

California

Last year, in  Dynamex Operations West Inc. v. The Superior Court of Los Angeles County, Charles Lee et al, Case No. S222732, the California Supreme Court adopted a new standard — the ABC test — for determining if a workers is an employee or independent contractor. The Court said: Under this test, a worker is properly considered…

Minneapolis Council wants to expand wage theft protections to gig workers, independent contractors 

From MinnPost,  Jessica Lee reports on efforts by Minneapolis City Council members to protect workers classified as independent contractors. Jessica writes: Council members Steve Fletcher (Ward 3) and Linea Palmisano (Ward 13) are developing a set of new guidelines to give Minneapolis’ Department of Civil Rights authority to help for-hire workers — think construction crews, app-based workers, freelance artists, handymen or other gig…

MI Legislation: Wage Theft, Independent Contractors, Noncompetes

Michigan Map

From The National Law Review, Christopher Mikula review proposed legislation in Michigan includes a bill to adopt the ABC test for classifying workers as independent contractors and imposing additional penalties for misclassifying workers. Chris writes: The new legislation would make employee-friendly modifications to several Michigan statutes, including the Payment of Wages and Fringe Benefits Act (PWFBA),…

Lawmakers: Misclassifying workers costing millions in revenue 

Pennsylvania

From The Intelligencer, Chris English reports on the efforts of Pennsylvania legislators to strengthen the laws governing misclassification of workers as independent contractors or employees. Chris writes: Misuse of the independent contractor designation for workers, primarily in the construction industry, is costing the state and federal governments a combined total of about $300 million in…

AB5, based on California’s Dynamex court decision, moves one step closer to law 

California

From the Los Angeles Times, Margot Roosevelt, Liam Dillon, and Johana Bhuiyan  report that the California bill that adopts the ABC test for classifying workers is moving towards passage in the California Assembly. They write: A measure to curb the widespread use of independent contractors across the California economy moved closer to final passage in…

Uber and Lyft Pledge to Support California Ballot Initiative to Keep Drivers as Independent Contractors 

Optimized-Uber_Logo_White

From CNBC, Salvador Rodriguez reports that Uber and Lyft are pledging millions of dollars to support a ballot initiative that will allow their drivers to be classified as independent contractors. Salvador writes: Uber and Lyft on Thursday pledged $60 million to a California ballot initiative for the 2020 election that would maintain the status of…

EXCLUSIVE: Kamala Harris Is Backing a Bill Giving Uber, Lyft, Postmates Workers New Rights 

From Vice, Cameron Joseph reports that Senator Kamala Harris supports AB5, the California bill that adopts the ABC test for classifying workers as employees or independent contractors. Cameron writes: Kamala Harris is backing a landmark California labor bill that could upend the gig economy and hand workers significantly more rights, a stand that’s at odds…

AB 5 will end shameful exploitation of gig economy workers

From the Sacramento Bee, Senator Elizabeth Warren supports AB5, the California bill that will adopt the ABC test for classifying workers as independent contractors. Senator Warren writes: From children working in coal mines to women locked inside dangerous factories to migrant farmworkers laboring under inhumane conditions, American history is full of shameful examples where powerful…