Court Backs 'ABC' Test: 'This Could Ruin the Gig Economy'

03 May, 2018, 12:11 | Author: Lillian Steele
  • Gig Economy Business Model Dealt a Blow in California Ruling

Plaintiff, a Dynamex driver classified as independent contractor, alleged that Dynamex improperly classified its drivers as independent contractors instead of employees, depriving those drivers of the protections provided by the California Labor Code and applicable wage order.

The Court concluded that the "suffer or permit to work definition is a term of art that can not be interpreted literally in a manner that would encompass within the employee category the type of individual workers. who have traditionally been viewed as genuine independent contractors who are working only in their own independent business". To be an independent contractor, a worker must be free from the company's control and direction in the way they perform a task. The ruling came in a lawsuit against a package and document delivery company called Dynamex that was accused of misclassifying drivers as contractors. While the drivers were generally free to set their own work schedules, they had to notify the company of the days they meant to work in advance. Additionally, drivers used their own vehicles, but wore company badges and shirts (purchased with their own funds), and sometimes were required to attach company or customer decals to their vehicles when making deliveries.

As SF Chronicle noted, Justice Cantil-Sakauye's ruling applies to disputes under state Industrial Welfare Commission orders, which set the standards for minimum wages and overtime payments for all employees, but not for independent contractors. Businesses that were forced to lay off thousands of employees were slow to rehire, finding they could fill needs with temporary workers and independent contractors, who performed jobs for more than one company.

Dubuque Bank & Trust Company Trimmed Celgene Corp (CELG) Position as Shares Declined
In other Celgene news, Director Gilla Kaplan sold 9,250 shares of the firm's stock in a transaction on Thursday, February 15th. Total analysts of 2 have positions in Kemper Corp (NYSE:KMPR) as follows: 1 rated it a "Buy", 0 with "Sell" and 1 with "Hold".

As an example, the court said a plumber hired by a retail store to fix a bathroom leak is not performing work that is part of the store's usual business.

The court held that the businesses that misclassify employees as contractors gain an unfair competitive advantage over competitors that strictly follow the rules. Dynamex appealed the certification decision to the California Court of Appeals, arguing that the definition of "employee" as set forth in the Martinez case was limited to a joint employer context.

These narrow requirements will force many California employers to re-examine their worker classifications and make adjustments where necessary to meet this test. This is the first new test for independent contractor status in California in almost 30 years.

Recommended:

  • Somewhat Positive Media Coverage Somewhat Unlikely to Affect GameStop (GME) Stock Price

    Taking a broader look at the analyst consensus, brokerage firms have a price target of $15.56 on Gamestop Corp (NYSE: GME ). As for the shares, it has gone above the 20 days moving average and is now hovering within a distance of 1.62%.

    $0.08 EPS Expected for Pretium Resources Inc. (PVG) as of May, 11

    The stock increased 0.29% or $0.02 during the last trading session, reaching $6.8. (NASDAQ:AMZN) was sold by Olsavsky Brian T. It primarily explores for gold, silver, and copper deposits.Last it reported negative earnings.
    BP profits race 71% higher as oil prices rebound

    BP profits race 71% higher as oil prices rebound

    Shareholders react positively to the highest profit in years even as the continuing burden of oil-spill payments push debt higher. The disaster killed 11 and sent oil spewing into the Gulf, resulting in the worst offshore oil spill in USA history.
  • Analysts Anticipate CVS Health (CVS) to Announce $1.39 Earnings Per Share

    Analysts Anticipate CVS Health (CVS) to Announce $1.39 Earnings Per Share

    Mizuho set a $95.00 price objective on CVS Health and gave the company a "buy" rating in a report on Wednesday, January 24th. Montag A & reported 0.26% stake. $102,044 worth of Comerica Incorporated ( NYSE :CMA) was sold by Guilfoile Peter William.
    AG Herring Joins Coalition Of States Defending National Auto Emission Standards

    AG Herring Joins Coalition Of States Defending National Auto Emission Standards

    It takes aim at a plan by the Environmental Protection Agency to scrap standards for vehicles manufactured between 2022 and 2025. California officials say the standards are achievable and the EPA's effort to roll them back is not based on any new research.
    Kanye West Believes Slavery Was a Choice

    Kanye West Believes Slavery Was a Choice

    " You see that motherfucka, fuck his ass up on GP", Daz says in one video he uploaded to Instagram . "We're mentally in prison". However, Kanye made an insane statement by saying that slavery was a choice for Black people.
  • Jets 2018 Draft Report Card: Grading every pick

    Jets 2018 Draft Report Card: Grading every pick

    Petty was taken in the fourth round by the Jets in the 2015 draft after an impressive Career with the Baylor Bears. But the team has lost Sheldon Richardson and Muhammad Wilkerson in the previous year .
    Syrian troops capture 4 villages east of Euphrates river

    Syrian troops capture 4 villages east of Euphrates river

    Previously, the Syrian army had abstained from a military offensive against the Kurdish forces, focusing on its campaign against Daesh militants.
    New Kid-Friendly E-Cig Marketing A Huge Poisoning Risk

    New Kid-Friendly E-Cig Marketing A Huge Poisoning Risk

    FDA says it might file injunctions or seize products if the companies don't take action to address regulators' concerns. For children old enough to understand, explain to them that these products can be risky and shouldn't be touched.
  • Apple beats forecasts to pay $100bn

    Apple beats forecasts to pay $100bn

    Since the launch of the iPhone 8 , iPhone 8 Plus and the iPhone X , the MSRP of an Apple phone is a bit higher. There's obviously huge opportunities for us and we have an extremely low share in that market overall.
    Gas Prices On The Rise Across America

    Gas Prices On The Rise Across America

    At 9.083 million b/d, gasoline demand is now more in line with rates typically seen during the spring driving season. The average price for a gallon of gas is lowest on Tuesday in California, according to analysis done by GasBuddy.
    Golden Knights rally for overtime win

    Golden Knights rally for overtime win

    Vegas entered the third period with a 3-1 lead but the Sharks rallied to tie the game 3-3 and force sudden death overtime. While the Sharks only converted two of their man advantages, leading to the winning goal and a huge difference in shots.


Popular

Trump plans to hire Bill Clinton's lawyer after White House lawyer quits
He also promoted an upcoming book, called "The Russia Hoax: The Illicit Scheme to Clear Hillary Clinton and Frame Donald Trump ". Due to a conflict of interest, the duo was unable to formally advise the president in the investigation.

Mkhitaryan suffers another knee injury against Man Utd
And in all the time he has spent at Arsenal , Bergkamp can certainly be considered one of his most talented players. It will be the third year of the manager [at the club] so we have to try to win the league'.

Jeremy Hunt to launch inquiry into 450000 missed breast cancer screenings
Compensation may be offered to families where the missed scan is found to be the cause of death. Letters will also go to next-of-kin of patients who did not get their invitation and have died.

Auto dangling from Toronto overpass part of movie shoot
"There is a walkway, there is a bicycle path that runs immediately underneath where the auto was hanging", he said. Adrian Ratushniak with Toronto Fire Services, who described the auto as a four-door sedan similar to a Honda Civic.

Xiaomi sees future in digital content services; launches Mi Music, Mi Video
According to the company's claim, the Mi Music now offers more than 10 million free tracks across 13 Indic language choices. The revamped Mi Music app goes live today whereas the Mi Video app is expected to be revamped next week.

Pompeo vows to put United States diplomatic power at Trump's service
It marked the first time President Donald Trump made a trip to the State Department. Pompeo succeeded as Rex Tillerson, who resigned in late March .

Drew Bledsoe Responds to Celtics' Terry Rozier Wearing His Patriots Jersey
Drew Bledsoe played for the Patriots from 1993-2001, before finishing out his career with the Buffalo Bills and Dallas Cowboys . Terry Rozier backed up his pregame trolling Monday night.

Baker Mayfield believed Jets wanted to draft him, according to agent
Mayfield has never been accused of domestic assault or struggled with drug addiction, he's cocky and brash but that's about it. Mayfield's ability to win is not in question but the maturity level off the field has been a question mark for many teams.

Trump calls leak of Mueller questions 'disgraceful'
Flynn has pleaded guilty to lying about his conversations with Kislyak and has been cooperating with the special counsel. Trump has said in the past that he wanted to talk with Mueller but that he would follow the advice of his attorneys.

Raptors rested, ready for third shot at LeBron, Cavaliers
Irving demanded an exit, severely weakening Cleveland , while the Isaiah Thomas trade was a dismal failure. His 41 points, 8 rebounds, 7 assists helped the Houston Rockets dispatch Utah 110-96 in the series opener.