As many of you are aware on April 30, 2018, the California Supreme Court issued a sweeping decision dramatically changing the legal landscape for California’s gig economy. In Dynamex Operations West Inc. v. The Superior Court of Los Angeles County, the Court considered whether the trial court properly certified a class of delivery drivers who claimed they were misclassified as independent contractors rather than employees.
In determining that the trial court did not abuse its discretion in certifying the class, the Supreme Court scrapped a more flexible classification test that has been used for decades in California (a multifactor test known as the Borello test) and adopted the “ABC” test, a standard that has its roots in determination of unemployment tax status in other states and presumes workers are employees instead of independent contractors.
This extraordinary decision will have far-reaching consequences for California companies reliant on independent contractors and undoubtedly spur a landslide of litigation for years to come.
The CDA along with Littler Mendelson will be reaching out to other companies and associations to solicit support of a “pre-emption” appeal in a Federal court. Even companies not directly impacted are going to be affected by significantly increased costs. That’s essentially the basis of argument that won in the similar ruling in Boston.
The 2018 CDA Annual Meeting and Lobby Day is less than 1 month away. If you are only going to be involved with one event this year make it this one. It’s not just a board meeting open to all members it’s the ANNUAL meeting of the association. This is the must attend CDA event of the year!
At this Annual Event we accomplish the following:
-Elect a new board
-Vote on changes to by-laws
-Determine the future of the Association
-Make sure CDA is representing you
Click here for full event details and to RSVP
On June 27, 2018 from 11am to 12pm save the date for a free Webinar to all CDA members “Auto Insurance Indigestion – Setting the Table for Success 2018” that will be hosted by Peter Schlactus with Risk Strategies (formerly Brightstone Insurance Services). Click link below for full event details and to RSVP:
Auto Insurance Indigestion – Setting the Table for Success 2018 Webinar
Delivery Industry News Bytes!
May 2018
California Announces a New Wage and Hour Independent Contractor Test
Dynamex: A New Test For Employee Status
Amazon: Much Ado About Nothing?
