States

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…

Massachusetts Misclassification Claims barred by Statute of Limitations

Massachusetts blue map

  Massachusetts Lawyers Weekly  reports on a misclassification claim that was limited by the statute of limitations because the worker shown have known that he was misclassified as an independent contractor. In this case, the court said: Plaintiff argues, however, that the statute of limitations as to these claims was tolled until he became a Town…

Appellate Division Rules Independent Contractor Agreements Signed by Driver’s Corporation Not Bullet Proof Against Class Action Overtime and Wage Deduction Claims 

Map Of New Jersey 3d Shape

  From JDSupra, Patrick McGovern discusses a New Jersey case in which an appellate court allowed a misclassification claim to proceed even though the company signed an independent contractor agreement with separate corporations. Patrick writes: The Appellate Division held that “a court is not limited to the terms of the contract between the parties” and the…

CTA sues California over employee vs. independent contractor

obson-hatsukami-morgan-134764-unsplash truck Indio California

  From the Common Carrier Journal (CCJ), Jill Dunn reports that the California Trucking Association has filed a lawsuit contesting the the application of the ABC test which was recently adopted by the California Supreme Court. Jill writes: The California Trucking Association and two owner-operators are suing California over the state’s enforcement of its recently adopted test…

Recently Enacted Tennessee Law Protects Gig Economy Companies 

  From JDSupra, Greg Grisham reports on a recent Tennessee statute that says that some workers who work through a marketplace platform are not employees. Greg writes: Earlier this year, a new Tennessee law (HB 1978) went into effect specifying that a “marketplace contractor” of a “marketplace platform” is not an employee of the marketplace platform “for…

Misguided court ruling will devastate California’s economy unless legislators step in 

California

  From the Daily Bulletin, Gene Wunderlich joins others in calling on the California legislature to modify the California Supreme Court’s decision adopting the ABC test for classifying workers as independent contractors. Gene writes: Reclassification will derail the hopes and plans of roughly 79 percent of independent contractors who prefer it over traditional employment, according to the…

New York’s Ban on Arbitration of Sexual Harassment Claims: Can it Survive Federal Preemption? 

woman with blue shirt #metoo

  From Lexology, Seyfarth Shaw LLP discusses the recent New York statute that prohibits an arbitration agreement that requires claims of sexual harassment to be arbitrated and whether the statute will survive federal preemption under the Federal Arbitration Act (FAA). They write: In light of these precedents, the new CPLR provision concerning harassment claims appears to have…

Malden business owners indicted for falsely misclassifying workers, concealing more than $2.8 million in payroll 

  From the Boston Globe, Jackson Cote reports that two owners of a cleaning company have been charged with misclassifying workers. Jackson writes: Two owners of a Malden-based cleaning company have been charged with misclassifying their workers, concealing more than $2.8 million in payroll, Attorney General Maura Healey announced Monday. Marcello Pompa, 40, of Saugus,…

Two State Courts Reject Arbitration Because Clause Lacked Administrator 

Map of Missouri

  From Lexology, Liz Kramer discusses recent cases in Missouri and New Jersey in which the court did not require arbitration because the administrator no longer provides arbitration services and because the arbitration clause did not indicate who would administer the arbitration. Liz writes: This post is aimed at drafters of arbitration clauses. Because if…

DYNAMEX UPDATE: Are There Still Independent Contractors in California? 

Optimized-ani-kolleshi-unsplash Doctor

From JDSupra, Robert Cooper and Carol Lucas discuss the Dynamex decision and the effect of the ABC test on the classification of physicians in California. Robert and Carol write: However, misclassification itself is not a violation; failure to pay a misclassified employee what he or she should have been paid is the violation. If a re-classified employee would be…