GIG WORKERS RECEIVE SOME SERIOUS LOVE

Posted by Lawyers for Employee and Consumer Rights - California Employment Attorneys | Jul 21, 2020 | 0 Comments

California Supreme Court Restricts Use of Independent Contractors

In a landmark decision, the California Supreme Court redefined the test for determining whether workers should be classified as independent contractors or employees. The Court adopted a new standard of presuming that all workers are employees rather than contractors and positioned the burden of proof on the organization classifying the individual as an independent contractor. The Court adopted what is called the “ABC Test.” Here are those parameters:

  1. that the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
  2. that the worker performs work that is outside the usual course of the hiring entity's business; and
  3. that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

The case, Dynamex Operations West, Inc. v. Superior Court of Los Angeles, centered on the drivers for a California-based delivery company. Some of their job requirements involved wearing corporate uniforms, putting corporate logos on their vehicles, paying for vehicle maintenance, gas, and other job-related expenses out of their own pockets. They were classified by their employer as “contract” or “gig” workers and not employees.

The drivers contended that their work fell under full-time employee classification, and should not fall under independent contractor classification. The case moved through the courts and ultimately wound up at the California Supreme Court in San Francisco.

Ultimately, in an 82-page ruling, the seven justices decided that California workers can only be classified as independent contractors by a company if they can show that the worker meets the criteria set forth in the “ABC Test” listed above.

Who will this affect?

The Court's ruling could greatly impact any California employer that has used the “we're unique and the normal rules don't apply to us” as the reason for classifying any individual as independent contractor. This may not be a viable rationale anymore. According to Bryan Menegus at Gizmodo, “[The case] could have wide ramifications for Uber, Lyft, Amazon, Instacart, and other companies buoyed by the sweat of the gig economy.” What is yet to be seen is how this ruling may affect the entire gig economy business model.

More importantly, the ruling could greatly affect California employee rights and have a wide-ranging impact on all California contract employees. Why? Because it may require employers to provide benefits and a minimum wage for gig workers.

Bottom-line: it's important to stay tuned here as Lawyers for Employee and Consumer Rights continue to study and report on the changing landscape and court rulings concerning this important employment rights issue.

KNOW YOUR RIGHTS | KNOWLEDGE IS POWER

Because California is an “at-will” employment state (employers are free to terminate employees at any time) employees think that they have no rights. Nothing could be further from the truth. Learn more about your employee rights. Contact us today.

Lawyers for Employee and Consumer Rights (LFECR) is a leading California employment law firm. With more than forty remote attorneys, LFECR is prepared to work on behalf of their clients anywhere in California.

Fired unfairly? Take advantage of your free consultation.

Call 888-625-0959


IM our Facebook page

Follow us on Twitter, Instagram, Medium, Linkedin


Read our important blog postings… and don't forget to check out our YouTube videos.

About the Author

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

[LAW FIRM NAME] Is Here for You

At [LAW FIRM NAME], we/] [I] focus on [PRACTICE AREA(s)] and [WE/I] [AM/ARE] here to listen to you and help you navigate the legal system.

Our Newsletter Gives You Helpful Employee Rights News, Giveaways, and More. Sign Up Now!

mailing

Menu