BREAKING NEWS: Many Workers Now Classified as Employees, Not Independent Contractors

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 will take effect on 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.”

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The Grady Firm to Host 2018 Labor Law Update Seminar on February 7 in Beverly Hills, CA

Beverly hillsOn Wednesday, February 7, 2018, Jennifer Grady, Esq. will host the 2018 Labor Law Update, sponsored by The Grady Firm, P.C. and the California Employers Association (CEA) in Beverly Hills, California. This event will cover recent, drastic changes to employment law and how such changes may impact California employers.  There will be time for Questions and Answers at the end of the presentation, and the opportunity to network with other business owners.

Governor brown signs lawsLate last year, Governor Jerry Brown signed more than 800 new bills into law. Many new laws significantly impact employers, including: Continue reading

New Policy Requirements for Employers Effective April 1, 2016

EmployeeHandbook_Pop_6467Beginning April 1, 2016, California employers with five or more total employees (whether or not all of those employees live in California) must update their anti-discrimination, anti-harassment, and complaint-investigation policies, and distribute them to employees for signature. These policies must be in compliance with recent amendments to California’s Fair Employment and Housing Act (FEHA), and must be distributed to all employees.

attorney clientThe new regulations include the following:

  • Provides for additional protected classes under the FEHA;
  • Clarifies harassment liability;
  • Updates legal standards and legal remedies of discrimination;
  • Revises complaint procedures;
  • Clarifies the investigation process;
  • Expands record-keeping requirements; and
  • Expands the rights of pregnant employees and employees with service animals.

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California Cities and Counties “Ban the Box” That Asks About Criminal History on Job Applications

jobapplicationIt’s a familiar box on any job application. “Check here if you have ever been convicted of a crime in a court of law.” But is it legal?

Recent US Census results illustrate that as many as 70 million American adults have a criminal record of some kind. In California, as many as 1 in 4 adults has an arrest or conviction in their history. Employers are reluctant to hire individuals with such a background, even though they may otherwise be well-qualified. Supporters of the so-called “Ban the Box” movement, which would remove application screening questions pertaining to an individual’s criminal history, aim to level the playing field between job-seekers. Continue reading