Uber Decision and Proposition 22
One of the most important changes in California in the last couple years is the change of how independent contractors are treated and whether they should be W-2 employees. There is no doubt that some employers were abusing the law in California that aligned with the federal rules. The question is did we throw the baby out with the bathwater? And it is clear that was exactly what was done.
New rules were set in place by a California Supreme Court ruling in the Dynamex vs. Superior Court of Los Angeles. The ruling in short established that someone working for a company was an employee not an independent contractor. The burden of proof became the companies; they must show the person was not an employee.
Then the legislature drafted AB5 and the Governor signed this bill which codified the Supreme Court ruling with many exceptions for various different professions. A labor law mediator who is an expert on labor law in California stated that he believes the exceptions in the law has made AB5 problematic. There are more exemptions that were being put forward that are on hold because of the COVID situation. For example, the musicians were not considered in initial… Read More