Legislative Committee Update
Posted August 9, 2018 in Legislation
By Chad Barger
Since my last update, things have continued evolving on the Dynamex ruling. On April 30th, the California Supreme Court’s decision created a new worker classification standard – the “ABC” test – that is more rigid than the previously used method to determine whether a worker is an independent contractor or employee. Business groups have pressed the Supreme Court to clarify whether its decision applied retroactively, but the justices have refused to answer, turning down a request to modify the opinion to apply only to future disputes.
In late July, Orange County Superior Court Judge William Claster ruled in a dispute involving exotic dancers and the Anaheim-based company Imperial Showgirls. He stated the Supreme Court’s decision on the Dynamex case does apply retroactively. Judge Cluster said,
“Tthe Supreme Court could have said explicitly the ruling applied only prospectively. The lack of such a pronouncement suggests that the decision should be applied retroactively”. Case #30-2015-00802813-CU-CR-CXC – Johnson vs. VCG-IS, LLC, et al.
The consequences of the Dynamex ruling remain unclear, but the ruling could greatly affect the process service industry, along with countless others.
Your CALSPro legislative committee is working hard to keep you up to date on this decision and how it could affect you.