The California Assembly’s most recent foray into gig work legislation – an attempt to help workers get the employee status they deserve, rather than allowing companies to consider them independent contractors just to save a few bucks – is based on a California Supreme Court decision on employee misclassification.
For example, Uber and Lyft drivers could become employees if the legislation passes because the work they do is central to the company’s business. Without drivers, Uber and Lyft couldn’t exist.
Related: Contractor vs. Employee: What are the differences?
According to Assemblywoman Lorena Gonzalez (D-San Diego), the bill is necessary because companies often misclassify workers just to avoid following laws on minimum wage, overtime and benefits. Some businesses are against AB-5, saying that it could devastate them because independent contractors help companies make larger profits.
As it stands now, many types of workers are exempt, including:
Related: Minimum wage disputes and unpaid overtime
If a worker passes the ABC test – the three criteria used to distinguish between contractors and employees – he or she is an independent contractor. The test breaks down this way:
The guidelines in the bill are very explicit, and they’d greatly diminish the gray area and provide workers with more protections if they’re entitled to work as employees rather than independent contractors. While many of the bill’s opponents are companies (like Uber and Lyft), it follows in the footsteps of Dynamex – a landmark decision by the California Supreme Court that ruled in favor of drivers working for courier and delivery company Dynamex Operations, Inc. In that case, the drivers argued for reclassification as employees rather than contractors because the employer required them to wear company uniforms and display the company logo while still providing their own vehicles and paying work-related costs.
If your employer has misclassified you, you could be entitled to employee benefits – but every case is different. You may need to talk to an attorney about your situation to find out whether your employer is exploiting you.
Call us at 818-230-8380 now to talk to a lawyer who understands the law and how it applies in your situation. We’ll answer your questions and tell you about your options.
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