States

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In this unpublished opinion, a California appellate court said that the client of a staffing agency could enforce an agreement requiring arbitration against the employee of a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…

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…