THE FIRST STEP BOARDS SHOULD TAKE IS TO REVIEW ALL THEIR
SERVICE PROVIDER RELATIONSHIPS.
who wasn’t an employee. Not content to let sleeping dogs lie, and much to Uber’s horror, in 2018 the California Supreme Court up- ended this long-assumed understanding with its ruling in the Dy- namex Operations W. v. Superior Court ((2018) 4 Cal. App. 5th
A 903)
case. Piling on, the California legislature in 2019 voted to codify the Dynamex case ruling and Governor Newsom signed Assembly Bill 5 into law on September 18, 2019 forcing California into an alien landscape concerning independent contractors. Tis article will first examine the changes on how to classify independent contractors and then will outline recommendations for boards to implement.
AB 5 arose from the April 30, 2018 California Supreme Court rul- ing in the hotly contested Dynamex case. Te case resulted in a radi- cal shift concerning independent contractors. News flash, the court held everyone is now assumed to be an employee, unless proven oth- erwise. Prior to the Dynamex case, the criteria used to determine whether one qualified as an independent contractor or an employee was outlined in the S.G. Borello & Sons, Inc. v. Department of Indus- trial Relations ((1989) 48 Cal. App. 3d 341) case. Under Borello, an individual was assumed to be an independent contractor and the test analyzed a variety of factors including the independence of the worker, special skills required, investment into equipment/materials to carry out the job, length of time the service has been provided, method of payment (i.e. based on time or per job), whether the per- son is at-will or subject to a contract, whether it’s the type of job that is normally done independently, belief in creating an independent contractor relationship, and others.
decade ago, before people started their side-hustles with Uber and renting their units through Airbnb, an indepen- dent contractor was generally understood to mean anyone
BY: JASMINE F. HALE, ESQ., CCAL
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