On September 18, 2019, California Governor Gavin Newsom signed into law A.B. 5, solidifying a tighter standard of rules for classifying a worker as an independent contractor. The new standard, known as the Dynamex standard, codifies and expands the earlier California Supreme Court decision, Dynamex Operations West, Inc. v. Superior Court of Los Angeles. It replaces the former Borello test, and puts in place a more simple three-pronged ABC test. The significant effect is that many workers in California will now be classified as employees instead of independent contractors (also informally known as “1099” workers). This change is one of the most significant disruptions to California employment law in decades. The law took effect on January 1, 2020. FIND OUT how to comply with this law by downloading our easy-to-understand instructions.Continue reading
On September 18, 2019, California Governor Gavin Newsom signed into law A.B. 5, codifying a tighter standard of rules for classifying a worker as an independent contractor. The new standard, known as the Dynamex standard, codifies and expands the earlier California Supreme Court decision, Dynamex Operations West, Inc. v. Superior Court of Los Angeles. It replaces the former Borello test, and puts in place a more simple three-pronged ABC test. The significant effect is that many workers in California will now be classified as employees instead of independent contractors (also informally known as “1099” workers). This change is one of the most significant disruptions to California employment law in decades. The law has now gone into effect as of January 1, 2020.
The new law is convoluted, and has numerous exceptions for various professions, as discussed in further detail below. To further complicate matters, the law codifies Dynamex for purposes of claims made under the California Labor Code, Unemployment Insurance Code, and wage orders, but curiously does not mention the California Government Code, under which workers may seek redress for harassment and discrimination, among other things.
In addition, the newly created exemptions to the ABC test will apply “retroactively to existing claims and actions to the maximum extent permitted by law.”
In order to ensure that your company’s workers are properly classified (in order to avoid substantial fines and expensive misclassification lawsuits), contact a qualified employment law attorney as soon as possible to ensure you are complying with the law and following the new rules.
What Is the Potential Impact of This Change?
According to the LA Times, “State Capitol Democrats and organized labor say their new ‘gig’ law will correct the misclassification of 1 million California workers who are falsely deemed independent contractors.”Continue reading
On September 3, 2019, Governor Gavin Newsom signed Senate Bill (SB) 778 to extend the deadline for employers to complete their Sexual Harassment Prevention Training. The deadline has been extended by a full year, from January 1, 2020 to January 1, 2021. The new bill also allows covered employers who have provided anti-harassment training in 2019 to wait two full years before providing refresher training.
The purpose of the bill is to give employers sufficient time to provide these trainings in a manner that values their importance and provides a greater impact towards improving equality in the workplace. A recent professional association survey found that over 80% of Human Resources and Operations Managers are aware of the new training requirements, but had not booked the training for their employees nine months into 2019.Continue reading
USCIS released a revised version of Form I-9, Employment Eligibility Verification, on July 17, 2017. Download instructions are available on the Form I-9 page. Employers can use this revised version, or continue using Form I-9 with a revision date of 11/14/16 N through Sept. 17, 2017. However, on Sept. 18, employers must begin using the revised form with a revision date of 07/17/17 N. Employers must continue following existing storage and retention rules for any previously completed Form I-9.
Revisions to the Form I-9 instructions:
- USCIS changed the name of the Office of Special Counsel for Immigration-Related Unfair Employment Practices to its new name, “Immigrant and Employee Rights Section.”
- USCIS removed “the end of” from the phrase “the first day of employment.”
California Elections Code section 14000 mandates that if employees do not have sufficient time outside of working hours to vote in a statewide election, then they may take up to 2 hours of paid time off to vote in-person. An employee may choose to take more than two hours off, if his or her employer allows it, but only 2 hours will be paid.
California polls will be open from 7 a.m. – 8 p.m. on election day. However, be sure to check with your local polling place for their hours of operation, as some locations may have extended hours. Continue reading
ATTENTION all Employers:
The Department of Labor recently revised the federal mandatory minimum wage and polygraph posters that employers must post in the workplace.
Although the federal minimum wage did not change, the new minimum wage poster now contains information regarding the consequences of incorrectly classifying workers as independent contractors, in addition to a new section on the rights of nursing mothers.
The new federal polygraph poster now contains updated contact information for the Department of Labor, and no longer contains a reference to the penalty amount of up to $10,000 for violation of the law.
Employers are required to post the updated posters in a conspicuous area of the workplace by no later than August 1, 2016. Continue reading
The Grady Firm is pleased to announce that it has been selected to serve the the California Employers Association, which serves 9,000 businesses throughout the state of California, as a “Partner Law Firm” and on-demand outside legal counsel. As a Partner Firm, The Grady Firm will offer legal counseling, training, litigation defense, and discounts to CEA members on its legal services.
As a one-stop shop for business owners, the Grady Firm is one of two member firms supporting CEA’s Southern California members, and the only firm specializing in the following areas: employment advising; employment/wage and hour litigation; sexual harassment training; immigration, an business law. All services are offered in English and Spanish. As a Partner Firm, The Grady Firm will offer discounts to CEA members on its legal services. Continue reading