California

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…

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…

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…

It’s Not Just California with an Employee-Friendly Worker Misclassification Test: Massachusetts was an Early Adopter 

From JDSupra, Michelle Roberts Gonzales, David Mitchell, and Jody Newman remind readers that Massachusetts uses the ABC test to classify workers as employees or independent contractors. They write: The legal community paid close attention to the California Supreme Court’s 2018 Dynamex decision which adopted a strict test to curtail misclassification of workers as independent contractors. Now that…

California Appellate Court Applies Dynamex Retroactively

California

From JDSupra, Ross Boughton, Daniel Lyman, and Noah Woo discuss a recent California appellate case in which the court said that the ABC test adopted by the Dynamex court should be applied retroactively. They write: On October 8, 2019, the Court of Appeals for California’s Second Appellate District in Gonzales v. San Gabriel Transit, Inc., et al.,…

California AB 51 Bans Mandatory Employment Arbitration Agreements 

From JDSupra, Robert Friedman, Jessica Marinelli, and Bruce Sarchet discuss AB51, a California bill that bans arbitration agreements in employment. They write: On October 13, 2019, California Governor Gavin Newsom signed Assembly Bill (AB) 51 into law, banning most employment arbitration agreements in California starting January 1, 2020. This new law is expansive in scope…

9th Circuit Puts Brakes on Joint Employment Claims 

From JDSupra, Ellen Boshkoff, Kerry Bundy , and Andrew Murphy discuss a recent case in which the court said McDonald’s was not a joint employer in California. Ellen, Kerry and Andrew write: In a significant opinion, the U.S. Court of Appeals for the 9th Circuit ruled that McDonald’s Corporation was not liable as a joint…

California Dreaming, California Nightmare – 3 Takeaways From California’s Controversial Independent Contractor Bill Becoming Law 

From JDSupra, Robert Cocchia, Cynthia Jackson, Sandra McCandless, Nick Pujji, and Peter Stockburger offer three terrific takeaways from the enactment of California’s AB5. They write: Takeaway No. 1 – Audit Your Independent Contractor Agreements Now Now that AB 5 has been signed into law, and the retroactivity of the law is codified, it’s critical to…

California Governor Says Gig Unions Are On The Way As He Signs ABC Test Into Law 

From Mondaq, Richard R. Meneghello reports that Governor Newsom of California intends to allow gig workers to form unions. Richard writes: Specifically, Newsom states that he intends to convene legislative leaders along with organized labor and the business community to “grant workers excluded from the National Labor Relations Act the right to organize and collectively bargain.”…