The State of California can begin enforcing a labor law geared to combat employee misclassification that trucking companies say will force them to eliminate the use of independent owner-operators. The 9th Circuit Court of Appeals ruled that a judge in San Diego was wrong to hand down an injunction barring the state’s labor commissioner from enforcing the 2019 Assembly Bill 5.
The statute codified the 2018 ruling in Dynamex Operations W. v. Superior Ct. by the California Supreme Court, formalizing the so-called “ABC Test” of ascertaining when a person is an employee or an independent contractor.
As our Los Angeles employment attorneys can explain, employee misclassification has long been a serious problem in California, with companies intentionally classifying workers wrongly as independent contractors rather than employees to avoid responsibility for things like minimum wage, required breaks, workers’ compensation insurance coverage and more. Continue Reading ›