On April 30, 2018, the California Supreme Court issued a long-awaited opinion in which it considered which test should be used to decide whether a worker asserting claims under a California Wage Order is an employee or an independent contractor. The following Seyfarth One Minute Memo summarizes the case and what it means for employers.
Seyfarth Synopsis: The California Supreme
Continue Reading California Supremes Prescribe “ABC” Test for Independent Contractor Status
Seyfarth Synopsis: From Mark Zuckerberg to the mayor of Stockton, the concept of Universal Basic Income is catching fire. What is this newfangled concept, and what can employers expect in the new emerging economy?
UBI – What Is It?
Universal Basic Income—“UBI”—is a form of social security, or a citizen’s stipend, to ensure everyone with a basic income from the
Continue Reading Robots Are Taking Our Jobs! UBI and the Future Workplace
Seyfarth Synopsis: The California Supreme Court heard oral arguments yesterday morning in Dynamex Operations v. Superior Court, a case addressing the legal standard for determining whether a worker should be classified as an independent contractor or an employee. We expect the Supreme Court’s opinion will be significant for any entity using independent contractors in California.
The Story Thus Far
As
Continue Reading California Supreme Court Hears Oral Argument to Define “Independent Contractor”
in·de·pen·dent adjective \ˌin-də-ˈpen-dənt\
1: not dependent: as a (1) : not subject to control by others
con·trac·tor noun \1 usually ˈkän-ˌtrak-tər, 2 usually kən-ˈ\
1: one that contracts or is party to a contract: as a : one that contracts to perform work or provide supplies
Two words with straightforward meanings; at least one would think. But put those words together—“independent contractor”—and their meaning in the workplace context is often anything but clear. Applying the independent contractor label carelessly can lead to a world of trouble.
Whether workers are properly designated as independent contractors, rather than employees, depends on a host of factors. The pivotal factor is whether the principal controls the manner and means of accomplishing the desired result.
Manner and Means: Determining The Level Of Control Exerted
If I offered to pay you to deliver something to a particular place before a particular time––say the ceremonial ball to Times Square by New Year’s Eve 2014––but I gave you no additional instructions, you would be free to choose the manner and means you used to get the ball there. Your route could be circuitous, or direct, as long as the ball arrived at the location before the deadline. You could mail it, carry it on a bus, drive it by car, fly it in a plane, or take it by boat. You could, theoretically at least, hire a mule team to take you and the ball to New York. Or, you could avoid the hassle altogether and pay a friend to do it.
Continue Reading Blurred Lines: When Manner Meets Means