The California Supreme Court has followed up on its groundbreaking decision in
Dynamex Operations West Inc. v. Superior Court, 4 Cal.5th 903 (2018), which imposed the so-called “ABC Test” for determining whether a worker is an employee or an independent contractor. In
Vazquez v. Jan-Pro Franchising International, S258191, the Court has ruled the ABC Test’s application applies retroactively to employee misclassification cases pending at the time of the
Dynamex decision.
Dynamex is helpful.
Dynamex imposed the ABC Test on questions of worker classification by holding that a worker is an independent contractor and not an employee if, and only if, the alleged employer establishes that the worker:
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On January 14, 2021, the California Supreme Court held that the “ABC Test” for classifying workers as independent contractors applies retroactively. The high court first articulated this standard, which makes it tougher for businesses and employers to classify their workers as independent contractors, in its 2018 decision in
Dynamex Operations West, Inc. v. Superior Court. Under the ABC Test, a worker is presumed to be an employee unless the employer can show that all three of the following conditions are satisfied: 1) the worker is free from the control and direction of the hiring entity in connection with the performance of the work, 2) the worker performs work that is outside the usual course of the hiring entity’s business, and 3) the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
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Highlights
The California Supreme Court in Vazquez v. Jan-Pro Franchising
International, Inc. ruled that its decision in Dynamex Operations
West, Inc. v. Superior Court 4 Cal. 5th 903 (2018) (Dynamex),
applies retroactively to all cases not yet final as of the date
Dynamex issued on April 30, 2018.
This critical holding finally and definitively answers the open
question regarding the retroactive application of the ABC test for determining employee vs. independent
contractor status.
The ruling means that nearly all cases that were not final as
of the date Dynamex issued will be governed under the ABC standard instead of Borello.
The California Supreme Court in
Legal Disclaimer
You are responsible for reading, understanding and agreeing to the National Law Review s (NLR’s) and the National Law Forum LLC s Terms of Use and Privacy Policy before using the National Law Review website. The National Law Review is a free to use, no-log in database of legal and business articles. The content and links on www.NatLawReview.com are intended for general information purposes only. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.