California generally uses the strict “ABC Test” to determine if a worker is an employee or an independent contractor. Under the ABC Test, a worker is presumed to be an employee unless the hiring company proves that the worker should instead be classified as an independent contractor. The ABC Test has been codified into law
Independent Contractor
City of Los Angeles Freelance Worker Protections Ordinance
On July 1, 2023, the City of Los Angeles Freelance Worker Protections Ordinance went into effect. The ordinance sets forth certain requirements for hiring entities retaining freelance workers operating within the City of Los Angeles.
Definition of Freelance Worker
Under the ordinance, a freelance worker is defined as an individual or entity composed of…
Ninth Circuit Holds California’s ABC Test for Classifying Independent Contractors Does Not Violate First Amendment
The U.S. Court of Appeals for the Ninth Circuit reviewed a challenge to California’s “ABC Test,” also referred to as Assembly Bill (AB) 5, which is California’s test for whether a worker can be classified as an independent contractor. In Mobilize the Message, LLC v. Bonta, the plaintiffs appealed the district court’s denial of…
AB 5 Past and Present – What You Need to Know
At the end of 2020, it seemed the legislature, the courts, and even California voters wanted to move away from the independent contractor test codified in Assembly Bill 5 (AB 5). However, during 2021, the pendulum seems to have swung back in favor of AB 5 and its guidelines on classifying workers as employees versus…
California Supreme Court Answers the Ninth Circuit: Dynamex Applies Retroactively
In Vazquez v. Jan-Pro Franchising International (Vazquez), the California Supreme Court answered “Yes” to the Ninth Circuit’s question, “Does your independent contractor ABC test in Dynamex Operations West, Inc. v. Superior Court (Dynamex) apply retroactively?”
In 2018, the Dynamex Court concluded that under California wage orders, anyone who performs work for a business is presumed…
In Case You Missed…California Legislative Changes Coming in 2021
2020 has been a year of constant changes for California employers. Here are some big developments that employers cannot afford to miss in 2021.
Expansion of the California Family Rights Act
One of the biggest legislative changes facing California employers in 2021 will be the expansion of the California Family Rights Act (CFRA). Currently, employers…
Governor Expands Exemptions to California’s Independent Contractor Law
One of the first employment-related bills signed by Governor Newsom this legislative session was Assembly Bill (“AB”) 2257, which recasts, clarifies, and expands exemptions to AB 5, last year’s bill relating to independent contractors.
In September 2019, Governor Newsom signed into law AB 5, which codified the “ABC Test” adopted by the California…
U.S. District Court Grants Preliminary Injunction Against Enforcement of AB 5: Truckers Can Keep Trucking as Independent Contractors in California
Earlier this week, the Southern District heard arguments regarding the grant of a preliminary injunction to prevent the enforcement of Assembly Bill 5 (“AB 5”) against motor carriers operating within California.
Judge Benitez granted the preliminary injunction and concluded in his order that “there is little question that the State of California has encroached …
Temporary Restraining Order Remains In Place After Hearing on the California Trucking Association’s Request for Injunction
On the eve of the Assembly Bill 5 (“AB 5”) effective date, Judge Roger Benitez granted the California Trucking Association’s (“Association”) request for a Temporary Restraining Order to prevent enforcement of the law which the Association argued requires truckers to be classified as employees instead of independent contractors.
On January 13th, Judge Benitez…
Another Win for the Trucking Industry Against AB 5
While the trucking industry waits for the federal court to hear arguments on the California Trucking Association’s request for an injunction against application of AB5, Judge William Highberger of the Los Angeles Superior Court ruled on January 8, 2020, that AB 5 runs afoul of the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”).…