Planning For Possible Calif. Contractor Classification Changes

By Elizabeth Arnold and Chester Hanvey (August 22, 2019, 4:47 PM EDT) -- The California Legislature is considering Assembly Bill 5, "Worker status: employees and independent contractors," a rule that would "codify the decision of the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court of Los Angeles[.]"[1] The Dynamex ruling introduced the "ABC" test as the new standard in determining whether a worker is an independent contractor in California.[2] The ABC test dictates that an independent contractor must meet all three of the following criteria to be properly classified:

(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work,...

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