California

California agencies target ‘underground economy’

construction workers

From the Contra Costa Times — California is attacking the underground economy — businesses who pay wages in cash and avoid withholding payroll taxes or paying for workers’ compensation insurance. “[E]arly this year Department of Industrial Relations director Christine Baker told the Little Hoover Commission that the state loses from $800 million and $1.2 billion…

Independent contractor versus employee under California Labor Law

business people

From Amir Kohan — “There is no set definition of the term “independent contractor” and as such, one must look to the interpretations of the courts and enforcement agencies to decide if in a particular situation a worker is an employee or independent contractor. In handling a matter where employment status is an issue, that…

Independent contractor misclassification in California now riskier

From HR.BLR.com — “the trial court applied the definitions of “employ” and “employee” in Wage Order No. 9, the Industrial Welfare Commission wage order applicable to the drivers. That wage order, like most, defines “employ” as “to engage, suffer, or permit to work.” It further defines “employer” as any person “who directly or indirectly, or…

Newspaper Carriers were Employees, Despite Independent Contractor Agreement, California Court Rules

Newspapers

From Jackson Lewis Workplace Resource Center — “Under California law, whether a worker is an employee or independent contractor depends upon whether the hiring entity retains “the right to control” the manner and means of the workers’ performance of their duties. Ayala v. Antelope Valley Newspapers, Inc., 59 Cal. 4th 522, 533 (Cal. 2014). In…

High Court Asked To Rein In 9th Circuit Court on Misclassification of Drivers

From Law 360 — “Affinity Logistics Corp. has urged the U.S. Supreme Court to review a Ninth Circuit decision that its retail store delivery drivers are not independent contractors, arguing that the appeals court ignored the district court’s detailed and reasoned fact-finding, in violation of the high court’s well-established deference standards. In its petition for…

California Labor Contractor and Independent Contractor Issues

From the National Law Review — “California has, for a variety of reasons, become a particularly hostile environment for alternative workforces over the past few years. The court decisions over the past year have been quite aggressive in attacking a variety of independent contractor models. As has been the case, the key items of focus…

Wage Order—Not Borello—Applies in Independent Contractor Status Test Says California Court of Appeal

From JDSupra Business Advisor — PerkinsCoie writes — “The California Court of Appeal, Second District, issued an opinion on October 15, 2014, that considered whether the definition of “employee” from the Industrial Welfare Commission Wage Order No. 9 Wage Order or the common law test found in S.G. Borello & Sons, Inc. v. Department of…

Independent contractor versus employee debate continues

From Lexology —  Amy Pierce writes “a California federal district court, in Taylor v. Shippers Transport Express, Inc., found that a class of current and former truck drivers had been misclassified as independent contractors and not employees by Shippers Transport Express, Inc. (STE). In granting the drivers’ motion for partial summary judgment, the court found that,…

Court Finds Sacramento Bee Misclassified Employees as Independent Contractors

From insurancenewsnet.com — “The Superior Court for the County of Sacramento held that the Sacramento Bee owned by the McClatchy Company misclassified its newspaper carriers as independent contractors when in fact they were employees.  This decision arose in a class action entitled Sawin v. The McClatchy Company, Case Number 34-2009-00033950.  This decision issued on September 22,…

New California Law Imposes Costly Risks to Companies Using Independent Contractors Supplied by Staffing and Recruiting Firms – But Risks Can Be Minimized

From Independent Contractor Compliance and Misclassification Legal Blog — “On September 28, 2014, Governor Jerry Brown of California signed a bill that puts a potentially enormous liability risk on companies that use workers supplied by “labor contractors” that fail to pay all wages due the workers. Assembly Bill 1897 requires client employers to “share with a labor contractor…