![]() ![]() The court focused on the “suffer or permit to work” definition of “employ” in the Wage Orders and held that this phrase must be interpreted broadly to cover all workers “who would ordinarily be viewed as working in the hiring business.” The court concluded that it was appropriate to use the “ABC” test to distinguish employees from independent contractors. The California Supreme Court instead announced a new test for claims based on alleged Wage Order violations. Plaintiffs argued that the test for joint employment of an employee interpreted in Martinez v. This test has long been used by California courts to address independent contractor disputes. of Industrial Relations (1989) 48 Cal.3d 341 should apply. Dynamex argued that the multi-factor test set forth in S. On appeal, the parties disagreed on what test governed the classification of independent contractors for purposes of alleged Wage Order violations. The plaintiffs ultimately obtained class certification as to their proposed class. ![]() The proposed class excluded drivers who performed work via third-party hire or subcontract, or who hired their own employees or subcontractors to drive, as well as drivers who concurrently provided services to another delivery company. The plaintiffs brought claims for violations of both the Labor Code and the applicable Wage Order, and sought to certify a class of drivers who performed deliveries directly for Dynamex within the class period. Dynamex had previously classified its drivers as employees but converted them to independent contractors in 2004 in efforts to save costs.Īccording to the decision, Dynamex drivers were generally permitted to set their own schedule, determine the sequence of same-day deliveries, reject deliveries, deliver for other companies when not performing Dynamex work, and hire or contract with others to make Dynamex deliveries for them. (Dynamex), a nationwide same-day courier and delivery service, alleging that they had been misclassified as independent contractors instead of employees. Two delivery drivers sued Dynamex Operations West, Inc. Superior Court, announcing a new test to determine whether a worker is an independent contractor or employee for purposes of claims based on California’s Industrial Welfare Commission (IWC) Wage Orders (Wage Orders). The California Supreme Court issued its decision on April 30 in Dynamex Operations West, Inc. Because satisfying this test is more difficult than the longstanding California “Borello” standard, California companies should review their independent contractor classifications under the new rules. The April 30 ruling adopts the more stringent “ABC test” to distinguish between independent contractors and employees for purposes of claims based on California’s Wage Orders.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |