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.”

Continue reading
Advertisements

Deadline Changed on Time to Comply with California Anti-Harassment Training

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

The Grady Firm Selected as California Employers Association Partner Firm

CEA

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