Proposition 22 will amend the state code to establish that app-based drivers are independent contractors, not employees, as long as their hiring party fulfills certain requirements that will likely be easier to meet than the "ABC test" established last year by the state legislature.
The DOL has put forward five distinct factors to be used when determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA).
New amendments are intended to clarify and expand the ABC test, which governs independent contractor classification under California's wage and hour, workers' compensation, unemployment insurance and labor laws.
A new regulation, which may be finalized before the end of the year, is expected to establish an employer-friendly standard for independent contractor classification.
A federal judge has denied Uber and Postmates' request for an injunction blocking enforcement of AB5, California's law that reclassifies most independent contractors as employees.
If signed into law as expected, AB 5 would codify the California Supreme Court's 2018 "Dynamex" ruling as part of the state code and extend its application beyond the wage orders to include state labor and unemployment insurance laws.
The 9th Circuit Court of Appeals has withdrawn an opinion issued earlier this year, in which it held that the Dynamex test for independent contractor classification applies retroactively.
In a victory for Uber, a National Labor Relations Board (NLRB) advice memorandum has concluded that the company's drivers are independent contractors rather than employees.
In Vazquez v. Jan-Pro Franchising, the 9th Circuit Court of Appeals noted that it is "basic in our legal tradition" that court decisions such as the California Supreme Court's 2018 Dynamex decision should apply retroactively.
Applying six factors derived from Supreme Court precedent, the US Department of Labor (DOL) said certain service providers were not "economically dependent" on an unnamed gig economy company that requested the opinion letter.
News: HR guidance on legally classifying and managing independent contractors under federal tax and employment laws.
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