Independent Contractor Versus Employee

On November 3, 2020, California voters passed Proposition 22, an exemption from AB5 for app-based drivers and couriers who use personal vehicles/transportation to provide on-demand services.  As detailed in previous posts here and here, Governor Gavin Newsom signed AB5 into law in September 2019.  Essentially, Proposition 22 filled a void caused by legislative

On Monday night, the California legislature passed Assembly Bill 2257 (AB2257), a clean-up bill to Assembly Bill 5 (AB5).  Under AB 2257, musicians, fine artists, freelance writers, photographers, and translators would be among those getting exemptions from AB5 to continue working as independent contractors, rather than as employees.  The bill is expected to be signed

Today, Governor Newsom signed AB 5 into law, drastically altering how millions of Californians are paid and drastically altering the legal analysis involved in distinguishing between “employees” and “independent contractors.” Daniel Kitzes and Brian Casillas have prepared a thoughtful analysis of this new law. You can read it here.

If you have workers in

It’s been nearly six months since the California Supreme Court announced that employers and government agencies were using the wrong test to determine who’s an independent contractor. In Dynamex Operations West, Inc. v. Superior Court, the court declared that employers must meet the three-prong ABC test to overcome the presumption of employment status. But

Guest blog post by Mikella Wickham:

They say location is everything in business.  How about classification of workers?

In certain industries, workers have a unique combination of specified skills and

Fit people working out
Copyright: wavebreakmediamicro / 123RF Stock Photo.

relative freedom to do their job.  As a result, small businesses are stuck between

Labor laws are not keeping pace with the new economy.  Right now there are only two options for employers.

Option one is to hire employees, and comply with the myriad complicated wage-and-hour laws, including very strict rules about monitoring an employee’s work hours.  In California, an employer must ensure a non-exempt employee works no more

Companies have a lot to lose if they misclassify employees as independent contractors. The affected workers can sue (individually or as a class) for any number of wage and hour violations. Employers can also get in trouble with the Internal Revenue Service, the Employment Development Department, the US Department of Labor, the Division

From the employer’s perspective, the only way to truly “win” an employment case is to avoid it in the first place. We litigators love the thrill of gettting a judge, arbitrator, or jury to decide in our client’s favor. But it can be awfully expensive to get to that point. So without further ado,